For the week ending 08/01/2024, mortgage rates decreased 5bp to 6.73%.

For a $100,000 loan, the monthly payment decreased $3.00 to $647/mo or $0.11/day.

Mortgage rates decreased 5bp, while the 10-Year Treasury rates decreased 28bp for the week ending 08/01/2024. The net difference resulted in a 23bp increased in the spread to 274bp. With the historical spread being 168bp, there now exists a ‘safety cushion’ of 106bp 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 106bp above historical norm.

Bill Knudson, Research Analyst LANDCO ARESC