For the week ending February 13, 2025, mortgage rates decreased 2 basis points (bp) to 6.87%.

This past week, for a $100,000 loan, the monthly payment decreased from $658/month to $657/month, which is a $0.04 per day reduction.

While mortgage rates decreased 2bp, 10-Year Treasury rates increased by 7bp, leading to a 9bp decrease in the spread to 235bp. With the historical spread at 168bp, there is now a 67bp “safety cushion” above the historical average.

The historic spread between 10-Year Treasury yields and mortgage rates is 168bp (see green line, right axis). Currently, this spread remains 67bp above the historical norm.

In July 2024, this spread was 150bp, and since then, mortgage rates have decreased more than the 10-Year Treasury yield.

Bill Knudson, Research Analyst LANDCO NEXA