Here is your weekend update on Treasury and Mortgage markets.
The current US Treasury 10Y-2Y yield curve just slipped further into reversion at -40.299 basis points, screaming impending recession. Oddly, The Federal Reserve has been leaving its balance sheet of Agency Mortgage-backed Securities (MBS) in tact (green line).
On the mortgage front, Bankrate’s 30-year mortgage rate index rose to 5.60% while the affordability-friendly 5/1 Adjustable Rate Mortgage (ARM) rate rose to 4.21%.
Currently, a 5/1 ARM borrower can save 139 basis points over the traditional 30-year mortgage rate.
Have a wonderful weekend!