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Mortgage Rates Update: May 16th, 2024


Next jobs release June 7 May 3 new jobs came in at 175,000 vs 303,000 for prior month. This slower job growth provides the Fed with support for rate reductions sometime in 2024.


Next CPI release is June 12 May 15 Annual CPI decreased from 3.5% to 3.4% as April 2024 monthly rate of 0.3% came into the April ANNUAL CPI calc and replaced the April 2023 0.4% monthly rate.


Next Fed meeting is June 12.


For the week ending 5.16.24 Mortgage rates DECREASED 7bp to 7.02%.

For a $100,000 loan the monthly payment DECREASED $5.00 and to $671/mo or $0.16/day.


Mortgage rates DECREASED 7bp while the 10 Year Treasury rates DECREASED 7bp for the week ended 5/16/24. The net difference resulted in 0bp change in the spread to 264bp. With the historical spread being 168 there now exists a “safety cushion” of 96bp above the historical spread.


The historic spread between the 10-year Treasury and mortgage rates is 168pb (see green line, right axis) and currently is 96bp above the historical norm.

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