The 10 year Treasury rate inched back up to 3.31% from 3.25% a week ago. Correspondent mortgage rates rose as well; although by 14 basis points. Retail rates lagged in their response to this uptick in the market and dropped slightly (6bps) to 4.78%. The resultant spread between the primary and correspondent rates is down to 18 bps; unsustainably low. I would expect this spread to get back to a more normal 25-30 basis points next week.
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