Mortgage spreads are almost back to normal
Housing Wire
JULY 19, 2025
In a week marked by discussions of the potential firing of Federal Reserve Chair Jerome Powell and inflation data, mortgage rates remained relatively calm, thanks to improvements in mortgage spreads. Mortgage spreads have improved significantly since 2023, leaving us just 0.49% from normal levels, based on the data we use. This means we can achieve near 6% mortgage rates without the 10-year yield dropping below 4%, provided spreads continue to improve.
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