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For the week ending 12.12.24 10 year US Treasury rates increased 15bp. In the following week ending 12.19.24 Mortgage rates INCREASED 12bp to 6.72%. Treasuries change first, and Mortgage follows. This past week Treasuries were up 25bp. Mortgage rates are headed to the 7.00% range.
This past week, for a $100,000 loan the monthly payment increased from $639/mo to $647/mo or $0.26 a day.
For the week ending 12.19.24 mortgages increased 12bp while the 10 Year Treasury rates increased 25bp. Spread decreased 13bp to 215bp. With the historical spread being 168 there now exists a “safety cushion” of 47bp above the historical spread. This low spread will not last long, mortgage rate increases will be needed.
The historic spread between the 10-year Treasury and mortgage rates is 168pb (see green line, right axis) and currently is 47bp above the historical norm. In July this spread was 150bp. Mortgage rates have decreased for more than the 10-year.
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