"Mortgage spreads are once again the unsung hero for housing in 2026 because they are the sole reason why mortgage rates have been under 6.65% the entire year."
"If we had the worst mortgage spread levels of 2023, mortgage rates would be 7.62% today, not 6.44%. If we had the worst levels of 2024, mortgage rates would be 7.24% today."
"Historically, mortgage spreads have ranged from 1.60% to 1.80%. Last week, spreads closed at 1.93%, flat from the week prior."
"The forecast for 2026 anticipates mortgage rates between 5.75% and 6.75%. The 10-year yield fluctuating between 3.80% and 4.60%."
Mortgage spreads closed at 1.93%, maintaining 2026 mortgage rates under 6.64%. If worst spread levels of 2023 returned, rates would be 7.62%. Improved spreads have kept rates low, with historical ranges between 1.60% and 1.80%. The recent high was 2.11%, showing significant improvement. The forecast for 2026 anticipates mortgage rates between 5.75% and 6.75%. The 10-year yield is expected to fluctuate between 3.80% and 4.60%. Without current spreads, rates would exceed 7%.
Read at www.housingwire.com
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