Red Sonia! US 30Y Mortgage Spread To 10Y Treasury Yield Averaged 1.71 Since 1971

by confoundedinterest17

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.

READ  The Wake of The Flood Continues: Refinance applications jump to highest level since April on low mortgage rates

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.

READ  Deaths have risen rapidly since cases began to surge. The 7-day average is now over 1500 deaths, an 87% increase since November 1. Millions of Americans are defying health warnings

Let’s see what happens to mortgage rates as mortgage credit availability and M2 Money velocity crash.