For the week ending April 10, 2025, mortgage rates decreased 2bp to 6.62%.
This past week, the monthly payment on a $100,000 loan dropped from $641 to $640—about $0.04 per day.
For the same week, mortgage rates fell 2bp while the 10-Year Treasury rate increased 34bp.
As a result, the spread decreased by 36bp to 222bp. With the historical spread at 168bp, there is now a 54bp safety cushion above the long-term average.
The historic spread between mortgage rates and the 10-Year Treasury is 168bp (see green line, right axis) and is currently 54bp above the historical norm.
In July 2024, the spread was 150bp. Since then, mortgage rates have decreased more than the 10-Year Treasury.
Bill Knudson, Research Analyst LANDCO NEXA