For the week ending March 27, 2025, mortgage rates decreased by 2bp to 6.65%. This past week, the monthly payment on a $100,000 loan dropped from $643 to $642, a decrease of approximately $0.04 per day.
While mortgage rates fell by 2bp, the 10-Year Treasury rate rose by 14bp. As a result, the spread between mortgage rates and the 10-Year Treasury narrowed by 16bp to 227bp. With the historical spread at 168bp, there is now a 59bp safety cushion above the historical norm.
The historic spread between the 10-Year Treasury and mortgage rates is 168bp (see green line, right axis) and currently sits 59bp above that level. In July 2024, this spread was 150bp, indicating that mortgage rates have declined more than the 10-Year Treasury over time.
Bill Knudson, Research Analyst LANDCO NEXA