For the week ending 6.2.22 Mortgage rates decreased 3bp to 5.29%.
For a $100,000 loan, the monthly payment decreased by $5 to $555 which is equal to $0.07 a day.
The historic spread (aka difference) between the 10 Year Treasury and mortgage rates is 168pb (see green line). At the start of 2022 mortgage rates have increased FASTER than the 10-year Treasury. This past week the 10-Year increase was 17bp while Mortgage rates decreased 3bp thus a 20bp decrease in spread occurred and the spread is 70bp above the historical norm. Given how quickly rates have recently risen, pricing personnel is going to want to “increase this cushion” to be safe against unexpected rate increases.