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Mortgage Rates Update: May 16th, 2024

Commentary:


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.

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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.

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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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