For the week ending 1.12.23 Mortgage rates DECREASED 15bp to 6.56%.
For a $100,000 loan, the monthly payment DECREASED by $10 to $636/mo or $.33/day.
While mortgage rates INCREASED 15bp, 10 Year Treasury rates also INCREASED 28bp. The net difference resulted in an increase of 13bp in the spread to 313bp. With the historical spread being 168 there now exists a “safety cushion” of 145bp 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 145bp 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.