MORTGAGE RATES now 5.33% For the 7-day period ending 5.26.22, 10-Year Treasury rates decreased 9bp while mortgage rates were decreased by 15bp. This caused the net spread to decrease from 6bp to 90bp ABOVE the normal spread of 168bp.
Daily changes in the US 10 Year Treasury rates are the blue bars while the red line is the 14-day cumulative change in rates: 9bp decrease. Inflation results for April were favorable, hence the decrease in rates that are gradually drifting down. RATES ROCKET UP BUT FEATHER DOWN. For the blue bars, it is unusual to have changes of greater than 0.10 in a single day and 0.20 is VERY unusual.
Inflation improved in April, and as such the Yield Curve dropped particularly for longer-term rates this past week (the red line is current and green is last week).
The Yield Curve for short terms is VERY steep while the longer-term (5+) remains virtually flat.