WHY DOES THIS MATTER FOR YOU? EXPLAINING TODAY'S MORTGAGE RATES the spread it means based on the normal historical This may feel overly technical and granular, but here's why homebuyers like you should understand gap between the two there's room for mortgage rates to improve today. And, experts think that's what lies ahead as long as inflation continues to cool. As Odeta Kushi Deputy Chief Economist at First American explains if you're following mortgage rates because you know they impact your borrowing costs, you may be wondering what the future holds for them Unfortunately, there's no easy way to answer that question because mortgage rates are notoriously hard to forecast. But, there's one thing that's historically a good indicator of what happen with rates. and that's the relationship between the 30-Year Mortgage Rate and the 10-Year Treasury Yield Historically, the average spread between the two over the last 50 years was 1.72 percentage points (also commonly referred to as 172 basis points). If you look at the trendline you can see when the Treasury Yield trends up mortgage rates will usually respond. And, when the Yield drops. mortgage rates tend to follow. While they typically move in sync like this, the gap between the two has remained about 1.72 percentage points for quite some time. But what's crucial to notice is that spread is widening far beyond the norm lately. if you're asking yourself what's pushing the spread beyond its typical average? It's primarily because of uncertainty in the financial markets. Factors such as inflation, other economic drivers and the policy and decisions from the Federal Reserve (The Fed) are all influencing mortgage rates and a widening spread BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES MONTROSE $499.000 1649 Wettemoth Street 3 Bed 12 Bath 12.164 sq.ft Don Bailey 970 2098257 CALL US TO LEARN MORE ABOUT OUR ADVANCED MARKETING LISTING SERVICES CURAY COUNTYI5635.000 805 Wildcat Canyon Road 3 Bed 12 Bath 1,635 sq ft. 145 Acres Linda Sof170417 8082 New Listing with incredible Views! DASED NORAS DESSBET te's reasonable to assume that the spread and therefore mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal. However, it's unlikely that the spread will return to its historical average of 170 basis points, as some risks are here to stay Similarly, an article from Forbes says Though housing market watchers expect mortgage rates to remain elevated amid ongoing economic uncertainty and the Federal Reserve's rate-hiking wor on inflation, they believe rates peaked lost fall and will decline-to some degree-later this year borring any unforeseen surprises bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond! BOTTOM LINE If you're either a first-time home buyer or a current homeowner thinking of moving into a home that better fits your current needs, keep on top of what's happening with mortgage rates and what experts think will happen in the coming months MONTROSE $560.000 The Sold Listings in Montrose County have decreased just under 22% compared to last year. If you'd like more information about the value of your home, give us a call today. New Listing! 62396 Road 586d13 Baths12.044 The Unrein Team, 970 209.99676 970 596 6748 BHHSColorado.com I (970) 249-4663 22% POS Call one of our trusted real estate brokers Trena Unrein, Brian Unvein Autumn Barrett, Don Bailey Jeff KechfussKree Christie, Linda Stel Makaya Cervone, Michael Scott Desch and Donna Justin WHY DOES THIS MATTER FOR YOU ? EXPLAINING TODAY'S MORTGAGE RATES the spread it means based on the normal historical This may feel overly technical and granular , but here's why homebuyers like you should understand gap between the two there's room for mortgage rates to improve today . And , experts think that's what lies ahead as long as inflation continues to cool . As Odeta Kushi Deputy Chief Economist at First American explains if you're following mortgage rates because you know they impact your borrowing costs , you may be wondering what the future holds for them Unfortunately , there's no easy way to answer that question because mortgage rates are notoriously hard to forecast . But , there's one thing that's historically a good indicator of what happen with rates . and that's the relationship between the 30 - Year Mortgage Rate and the 10 - Year Treasury Yield Historically , the average spread between the two over the last 50 years was 1.72 percentage points ( also commonly referred to as 172 basis points ) . If you look at the trendline you can see when the Treasury Yield trends up mortgage rates will usually respond . And , when the Yield drops . mortgage rates tend to follow . While they typically move in sync like this , the gap between the two has remained about 1.72 percentage points for quite some time . But what's crucial to notice is that spread is widening far beyond the norm lately . if you're asking yourself what's pushing the spread beyond its typical average ? It's primarily because of uncertainty in the financial markets . Factors such as inflation , other economic drivers and the policy and decisions from the Federal Reserve ( The Fed ) are all influencing mortgage rates and a widening spread BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES MONTROSE $ 499.000 1649 Wettemoth Street 3 Bed 12 Bath 12.164 sq.ft Don Bailey 970 2098257 CALL US TO LEARN MORE ABOUT OUR ADVANCED MARKETING LISTING SERVICES CURAY COUNTYI5635.000 805 Wildcat Canyon Road 3 Bed 12 Bath 1,635 sq ft . 145 Acres Linda Sof170417 8082 New Listing with incredible Views ! DASED NORAS DESSBET te's reasonable to assume that the spread and therefore mortgage rates will retreat in the second half of the year if the Fed takes its foot off the monetary tightening pedal . However , it's unlikely that the spread will return to its historical average of 170 basis points , as some risks are here to stay Similarly , an article from Forbes says Though housing market watchers expect mortgage rates to remain elevated amid ongoing economic uncertainty and the Federal Reserve's rate - hiking wor on inflation , they believe rates peaked lost fall and will decline - to some degree - later this year borring any unforeseen surprises bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond ! BOTTOM LINE If you're either a first - time home buyer or a current homeowner thinking of moving into a home that better fits your current needs , keep on top of what's happening with mortgage rates and what experts think will happen in the coming months MONTROSE $ 560.000 The Sold Listings in Montrose County have decreased just under 22 % compared to last year . If you'd like more information about the value of your home , give us a call today . New Listing ! 62396 Road 586d13 Baths12.044 The Unrein Team , 970 209.99676 970 596 6748 BHHSColorado.com I ( 970 ) 249-4663 22 % POS Call one of our trusted real estate brokers Trena Unrein , Brian Unvein Autumn Barrett , Don Bailey Jeff KechfussKree Christie , Linda Stel Makaya Cervone , Michael Scott Desch and Donna Justin