For the 7 day period ending 3.17.22, 10 Year Treasury rates increased 22bp while mortgage rates increased 31bp. This caused the net spread between the two to increase 9bp to 48bp above the normal spread of 168bp. It appears the mortgage market is positioned for anticipated additional rate increases by the Fed.
Daily changes in the US 10 Year Treasury rates are the blue bars while the red line is the cumulative change in rates since 2/25/22. Cumulative changes over the past 14 trading periods resulted in a 23bp increase. 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.
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