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Mortgage Rates Update: May 23rd, 2024

Commentary:


For the coming week, given that Treasuries increased 9bp it is problematic if mortgages will remain below 7.00%.  Possible--but it will be close.  7.00% is a price point that gathers some attention from home buyers.  The longer it stays below 7.00% the more media coverage will occur.

 

  • Next jobs release June 7 

  • Next CPI release is June 12   

  • Next Fed meeting is June 12

 

For the week ending 5.23.24 Mortgage rates DECREASED 8bp to 6.94%.


For a $100,000 loan, the monthly payment DECREASED $5.00 and to $661/mo or $0.18/day.

 

Mortgage rates DECREASED 8bp while the 10 Year Treasury rates INCREASED 9bp for the week ended 5/23/24. The net difference resulted in a 17bp decrease in the spread to 247bp. With the historical spread being 168 there now exists a “safety cushion” of 79bp 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 79bp above the historical norm.



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