Why Are House Mortgage Rates So High Compared to Treasuries?

By historical standards, the distribution is wide.

Before to the pandemic, the average spread across all data sets was 1.69 percentage points.

For example, 10-year treasury bonds paid 2.68% in February 2019.

The typical 30-year fixed-rate mortgage costs 4.37%.

The difference was right at the long-term average of 1.69%

The spread is typically between 1.5% and 2.0%.

The originator gets compensated in cash for increasing the interest rate.

This payment is known as the retail mortgage spread.

Starting in early 2024, the process will most likely be gradual and will last about two years.

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