For the week ending 9.1.22 Mortgage rates INCREASE 11bp to 5.86%.
For a $100,000 loan the monthly payment INCREASED $7 to $591/mo or $0.23/day.
While mortgage rates INCREASED 11bp, 10 Year Treasury rates INCREASED 23bp. The net difference is a 12bp increase in a spread of 260bp. With the historical spread being 168 there now exists a “safety cushion” of 92bp above this historical spread.
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see the green line, right axis) and currently, there is a 92bp above the historical norm. For this spread to return to the historical norm, either mortgage rates will decrease or 10 Year Treasury rates will increase.