For the week ending 1.19.23 Mortgage rates DECREASED 18bp to 6.38%.
For a $100,000 loan, the monthly payment DECREASED by $10 to $624/mo or $.39/day.
While mortgage rates DECREASED 18bp, 10 Year Treasury rates also DECREASED 4bp. The net difference resulted in a decrease of 14bp in the spread to 299bp. With the historical spread being 168 there now exists a “safety cushion” of 131bp 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 is 131bp 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.