For the week ending 1/9/25, mortgage rates increased by 2bp, reaching 6.93%.
This past week, the monthly payment for a $100,000 loan rose from $659 to $661, an increase of $0.04 per day.
During the same period, 10-Year Treasury rates increased by 11bp, while mortgage spreads decreased by 9bp to 225bp. With the historical spread being 168bp, there is now a “safety cushion” of 57bp above the historical norm.
The historic spread between the 10-Year Treasury and mortgage rates is 168bp (see green line on the chart, right axis), and it currently sits at 57bp above this average.
In July, this spread was 150bp. Mortgage rates have decreased relative to the 10-Year Treasury rates over time.
Bill Knudson, Research Analyst LANDCO NEXA