In June I published Have Mortgage Rates peaked? when the 30-year national average Fixed-Rate Mortgage (FRM) reached 5.81% and commented:”..a realistic expectation would be that the spread (the difference beyween the FRM and the yield on the 10-year Treasury) will drop from its current 2.5% to at least 1.8% at some point. If the yield on 10T stays in the low 3% range that would suggest that the FRM will drop below 5% again.”
Well it did…for a while, dropping to 4.99% on August 4th.
But then this happened: