Commentary:
For the coming week, given that Treasuries increased 9bp it is problematic if mortgages will remain below 7.00%. Possible--but it will be close. 7.00% is a price point that gathers some attention from home buyers. The longer it stays below 7.00% the more media coverage will occur.
Next jobs release June 7
Next CPI release is June 12
Next Fed meeting is June 12
For the week ending 5.23.24 Mortgage rates DECREASED 8bp to 6.94%.
For a $100,000 loan, the monthly payment DECREASED $5.00 and to $661/mo or $0.18/day.
Mortgage rates DECREASED 8bp while the 10 Year Treasury rates INCREASED 9bp for the week ended 5/23/24. The net difference resulted in a 17bp decrease in the spread to 247bp. With the historical spread being 168 there now exists a “safety cushion” of 79bp 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 79bp above the historical norm.
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