For the week ending 6.16.22 Mortgage rates increased 55bp to 6.01%.
For a $100,000 loan, the monthly payment increased by $35 to $600 which is equal to $1.16 a day.
The historic spread (aka difference) between the 10 Year Treasury and mortgage rates is 168pb (see the green line). At the start of 2022 mortgage rates have increased FASTER than the 10-year Treasury. This past week the 10 Year increased 24bp while Mortgage rates increased 55bp thus a 31bp increase in spread occurred and the spread is 105bp above the historical norm. Given how quickly rates have recently risen, pricing personnel are going to want to “increase this cushion” to be safe against unexpected rate increases