For the Week Ending 12/26/24: Mortgage Rates Increased 13bp to 6.85%

Mortgage rates increased by 13bp to 6.85% for the week ending 12/26/24, edging closer to the 7.00% range.

For a $100,000 loan, the monthly payment rose from $647 to $655, an increase of $0.29 per day.

During this period, mortgage rates rose by 13bp, while 10-Year Treasury rates increased by just 1bp. The spread widened by 12bp to 227bp. With the historical spread being 168bp, there is now a “safety cushion” of 59bp above the historical norm.

The historical spread between the 10-Year Treasury and mortgage rates is 168bp (see green line, right axis) and is currently 59bp above the historical average.

In July, this spread was 150bp. Mortgage rates have been increasing more slowly than the 10-Year Treasury rate.

Bill Knudson, Research Analyst LANDCO NEXA