For the week ending 2/6/25, mortgage rates decreased by 6bps to 6.89%.

Over the past week, the monthly payment on a $100,000 loan declined from $662 to $658, a reduction of approximately $0.13 per day.

For the same period, mortgage rates fell by 6bps, while 10-Year Treasury rates dropped by 7bps. The spread between the two increased by 1bp to 244bps. With the historical spread at 168bps, there is now a “safety cushion” of 76bps above the historical average.

The historic spread between the 10-Year Treasury and mortgage rates is 168bps (see green line, right axis) and is currently 76bps above the historical norm.

In July 2024, this spread was 150bps. Since then, mortgage rates have declined more than the 10-Year Treasury rate.

Bill Knudson, Research Analyst LANDCO NEXA