Mortgage Rates Update: March 2nd, 2023
For the week ending 3.2.23 Mortgage rates INCREASED 15bp to 6.88%.
For a $100,000 loan, the monthly payment INCREASED $10 to $ 657 /mo or $. day
While mortgage rates INCREASED 15bp, 10 Year Treasury rates INCREASED 20bp. The net difference resulted in and decrease of 5bp in the spread to 280bp. With the historical spread being 168 there now exists a “safety cushion” of 112bp above the historical spread.
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see green line, right axis) and currently, there is a 112bp 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.