Mortgage rates dip under 6% as mortgage spreads normalize

Mortgage spreads serve as the hero

In 2024, when the 10-year yield fell to 3.62%, mortgage rates never fell below 6% because mortgage spreads remained elevated.

This year, however, mortgage spreads are close to their normal range of 1.6% to 1.8%, which is a big reason the 10-year yield can still be above 4%. Mortgage spreads, according to our previous HousingWire tracker report, were…