For the week ending 9.29.22 Mortgage rates INCREASE 41bp to 6.93%.
For a $100,000 loan the monthly payment INCREASED $27 to $660/mo or $0.91/day.
![](https://static.wixstatic.com/media/d143ac_2b9613df5d4a4f8888cf1a4aea2241ec~mv2.png/v1/fill/w_49,h_31,al_c,q_85,usm_0.66_1.00_0.01,blur_2,enc_auto/d143ac_2b9613df5d4a4f8888cf1a4aea2241ec~mv2.png)
While mortgage rates INCREASED 41bp, 10 Year Treasury rates INCREASED 6bp. The net difference is a 35bp increase in a spread of 317bp. With the historical spread being 168 there now exists a “safety cushion” of 149bp above this historical spread.
![](https://static.wixstatic.com/media/d143ac_b43e0404ffe54eea83d5bf322f2fed52~mv2.png/v1/fill/w_49,h_30,al_c,q_85,usm_0.66_1.00_0.01,blur_2,enc_auto/d143ac_b43e0404ffe54eea83d5bf322f2fed52~mv2.png)
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see the green line, right axis) and currently, there is a 149bp 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.
![](https://static.wixstatic.com/media/d143ac_c527a136d648485db59b58c867be8085~mv2.png/v1/fill/w_49,h_30,al_c,q_85,usm_0.66_1.00_0.01,blur_2,enc_auto/d143ac_c527a136d648485db59b58c867be8085~mv2.png)