For the week ending 1/2/25, mortgage rates increased by 6 basis points to 6.91%.

This change translates to a monthly payment increase for a $100,000 loan, rising from $655 to $659, or approximately $0.19 per day.

During the same period, mortgage rates rose 6bp, while the 10-Year Treasury rates decreased by 1bp. This resulted in a 7bp increase in the spread to 234bp.

With the historical spread being 168bp, there is now a “safety cushion” of 66bp above the historical average.

The historic spread between the 10-Year Treasury and mortgage rates, represented by the green line on the right axis, currently sits at 66bp above the norm.

In July, this spread was 150bp. Mortgage rates have since decreased more relative to the 10-Year Treasury rate.

Bill Knudson, Research Analyst LANDCO NEXA