For the week ending 11.23.22 Mortgage rates DECREASED 3bp to 6.81%.
For a $100,000 loan, the monthly payment DECREASED by $3 to $654/mo or $.07/day.
While mortgage rates DECREASED 3bp, 10 Year Treasury rates DECREASED 6bp. The net difference is a 3bp increase in a spread of 310bp. With the historical spread being 168 there now exists a “safety cushion” of 142bp above the historical spread.
The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see the green line, right axis) and is currently 142bp 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.