Recently, I have been expecting to see mortgage rates fall a lot, because 10-year Treasury Yields have fallen a lot. But they haven’t. Here is the spread of 30-year mortgages over 10-year Treasuries:
As you can see, the spread is at its highest level in at least five years (BTW, 10-year Treasuries are from Fridays, and the Freddie PMMS is from Thursdays, but still…).
I am eagerly awaiting next week to see if this continues.