For the week ending April 3, 2025, mortgage rates decreased 1bp to 6.64%.
This past week, the monthly payment on a $100,000 loan dropped from $642 to $641—about a $0.02 decrease per day.
For the same week, mortgage rates fell 1bp while the 10-Year Treasury rate dropped 32bp.
As a result, the spread increased by 31bp to 258bp. With the historical spread at 168bp, there is now a 90bp safety cushion above the long-term average.
The historic spread between the 10-Year Treasury and mortgage rates is 168bp (see green line, right axis) and is currently 90bp above the historical norm.
In July 2024, this spread was 150bp. Since then, mortgage rates have decreased more than the 10-Year Treasury.
Bill Knudson, Research Analyst LANDCO NEXA