Why Are House Mortgage Rates So High Compared to Treasuries?

By historical standards, the distribution is wide.

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

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

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

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

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The spread is typically between 1.5% and 2.0%.

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

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This payment is known as the retail mortgage spread.

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

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