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Bill Knudson

Treasury Rates: June 9th, 2022

MORTGAGE RATES now 5.46% For the 7-day period ending 6.9.22, 10 Year Treasury rates INCREASED 12bp while mortgage rates were increased by 17bp. This caused the net spread to increase 5bp to 70bp ABOVE the normal spread of 168bp. Mortgage rates will likely increase due to the change in Treasury rates.


 

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: 29bp increase. 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.


 

Rates rose this past week particularly for short terms (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.


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