Blog Post: Mortgage Spreads: The Quiet Reason Housing Demand Is Rising in 2025

by Patti Gregory

You may not see them in headlines, but mortgage spreads are quietly playing a starring role in today’s housing market. Understanding what they are and how they’re working in your favor can be a game changer if you're buying or selling this year.

🔍 What Is a Mortgage Spread?

  • The mortgage spread is the difference between the 10-year Treasury yield and the 30-year mortgage rate.

  • Historically, that spread hovers around 1.60% to 1.80%. But in 2023, it ballooned to 3.10%, which pushed mortgage rates much higher.

📉 Why Spreads Matter More Now

  • Lately, spreads have compressed to roughly 2.15%, which has helped keep mortgage rates lower than they otherwise might have been—even when the broader market is volatile.

  • This shift is making home buying more accessible and reigniting demand that slowed in previous years.

đź’ˇ What It Means for Buyers & Sellers

  • For Buyers: You may be seeing better buying power than you anticipated. If you're waiting for rates to drop dramatically, you might miss the window where this compressed spread is working in your favor.

  • For Sellers: The demand is heating back up. Homes priced smartly are beginning to move faster again.

  • For both: Timing matters. Are you starting to realize how quickly these shifts can impact your opportunity?

Would love to connect!

 

Haven Realty Group

Your Partner in Success

 

Patti Gregory, Realtor

714.398.1998

REAL Brokerage

DRE 01182154

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