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Mortgage Rates Update: January 5, 2023

For the week ending 1.5.23 Mortgage rates INCREASED 6 bp to 6.71%.


For a $100,000 loan, the monthly payment INCREASED $4 to $ 646/ mo or $.13 /day

 

While mortgage rates INCREASED 6bp, 10 Year Treasury rates DECREASED 12bp. The net difference resulted in an increase of 18bp in the spread to 300bp. With the historical spread being 168 there now exists a “safety cushion” of 132bp 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 132bp 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.


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