For the week ending 5.1.25 Mortgage rates DECREASED 5bp to 6.76%.
This past week, for a $100,000 loan the monthly payment decreased from $653/mo to $649/mo or $0.11 a day.
For the week ending 5.1.25 mortgages decreased 5bp while the 10 Year Treasury rates decreased 7bp.
Spread increased to 251bp. With the historical spread being 168 there now exists a “safety cushion” of 83bp 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 83bp above historical norm.
In July 2024 this spread was 150bp. Mortgage rates have decreased more than the 10 year.
Bill Knudson, Research Analyst LANDCO NEXA