For the week ending 1.26.23 Mortgage rates DECREASED 2bp to 6.36%.
For a $100,000 loan, the monthly payment DECREASED by $1 to $623/mo or $.04/day.
While mortgage rates DECREASED 2bp, 10 Year Treasury rates also DECREASED 10bp. The net difference resulted in a decrease of 12bp in the spread to 287bp. With the historical spread being 168 there now exists a “safety cushion” of 119bp 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 119bp 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.
