For the week ending 1.30.25, mortgage rates decreased by 1bp to 6.95%.

This past week, for a $100,000 loan, the monthly payment decreased from $663/month to $662/month, or a reduction of $0.02 per day.

While mortgage rates decreased by 1bp, the 10-year Treasury rates decreased by 13bp. As a result, the spread increased by 12bp to 243bp, which is 75bp above the historical spread of 168bp. This creates a “safety cushion” above the historical norm.

The historic spread between the 10-year Treasury and mortgage rates is 168bp (see green line on the right axis) and is currently 75bp higher than the historical norm.

In July 2024, this spread was 150bp, indicating that mortgage rates have decreased more significantly than the 10-year Treasury rates.

Bill Knudson, Research Analyst LANDCO NEXA