For the week ending 10.1.26 Mortgage rates increased by 25bp to 7.28%. This past week, for a $100,000 loan the monthly payment increased $17 to $684/mo.

For the week ending 10.1.26 mortgage rates increased 25bp, mean while the 10 Year Treasury rates were UP 6bp. Spread INCREASED 16bp. With the historical spread being 168 there now exists a “safety cushion” of 36bp above the historical spread. MBS holders have taken a real hit.

The historic spread between the 10 Year Treasury and mortgage rates is 168pb (see green line, right axis) and currently is 36bp above historical norm. It appears in periods of rising interest rates, the spread increases. Rocket up, feather down.

Bill Knudson, Research Analyst LANDCO NEXA