Ever curious about how low the 30-year mortgage rate can go? Just check out the 10-year Treasury yield.
The spread between the 30-year mortgage rate over the 10-year Treasury yield since 1971 has averaged 1.7159.
But since the Covid event in March, the spread has been decreasing and is now 1.9862.
Unfortunately, looking at SONIA to explain The Fed Funds Target rate has been look elsewhere.
Let’s see what happens to mortgage rates as mortgage credit availability and M2 Money velocity crash.