The 194bp differential is the line to stare at: 2023 ran 265 and mid-2006 ran 241, so the 6.95 quote today is mostly the 5.01 in the 10-year rather than originator margin. A gap that thin leaves no cushion — the next backup in the long end passes straight through to the borrower.
The 194bp differential is the line to stare at: 2023 ran 265 and mid-2006 ran 241, so the 6.95 quote today is mostly the 5.01 in the 10-year rather than originator margin. A gap that thin leaves no cushion — the next backup in the long end passes straight through to the borrower.
Worrisome for builders and existing sellers alike. Hard to see sales volumes push higher.