For the week ending 12.1.22 Mortgage rates DECREASED 9bp to 6.72%.
For a $100,000 loan, the monthly payment DECREASED by $6 to $646/mo or $.20/day.
While mortgage rates DECREASED by 9bp, 10 Year Treasury rates DECREASED by 18bp. The net difference is a 3bp increase in a spread of 319bp. With the historical spread being 168 there now exists a “safety cushion” of 151bp above the 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 151bp above the historical norm. For this spread to return to the historical norm, either mortgage rates will decrease further or 10 Year Treasury rates will increase.