For the week ending 2.27.25, mortgage rates decreased by 9bp to 6.76%.
This past week, for a $100,000 loan, the monthly payment decreased from $655 to $649, a reduction of $6.
Mortgage rates decreased by 9bp, while the 10-year Treasury rates decreased by 21bp. The spread increased by 12bp to 247bp, with the historical spread being 168bp. This creates a “safety cushion” of 79bp above the historical spread.
The historic spread between the 10-year Treasury and mortgage rates is 168bp (see green line, right axis), and it is currently 79bp above the historical norm.
In July 2024, this spread was 150bp. Mortgage rates have decreased more than the 10-year Treasury rates.
Bill Knudson, Research Analyst LANDCO NEXA