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The Rate Decoder

Build a mortgage rate with your own hands, then you'll never misread a headline again.

Decoder
The Rate Decoder
@fmaunlv
Build a mortgage rate with your own hands, then you'll never misread a headline again.
The 10-year Treasury today
4.2%
The lender markup (the spread)
3%
The mortgage rate that produces
Normal spread: 1.5 to 2 points. Stress pushes it near 3. The Fed funds rate isn't even in this formula.
...
FED FUNDS
What the Fed actually moves
Credit cards, car loans, business credit lines. Not this.
HISTORY
6.3% now, 3% COVID low, 7.7% 50-year average
The early-80s peak topped 18%. Cheap is relative.
The headline I keep hearing, decoded
Which rate is it actually about? Write it down.
The market you're in is the market you've got.Fed funds, the 10-year, and your loan are three different animals.
Decode first, opine second.
Use it live above, or take a copy with you: Download PDFDownload image
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