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.
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.
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.
