For the week ending February 20, 2025, mortgage rates decreased by 2bps to 6.85%.
This past week, the monthly payment on a $100,000 loan dropped from $657 to $655, reducing costs by approximately $0.04 per day.
Both mortgage rates and 10-Year Treasury rates decreased by 2bps, leaving the spread unchanged at 235bps. With the historical spread at 168bps, there is currently a 67bps safety cushion above the long-term average.
The historical spread between the 10-Year Treasury and mortgage rates is 168bps (see green line, right axis) and remains 67bps above the historical norm.
In July 2024, this spread was 150bps. Since then, mortgage rates have declined more than the 10-Year Treasury.
Bill Knudson, Research Analyst LANDCO NEXA