08/25/2026
Waiting for mortgage rates to drop before you make a move? There’s something you should know. 👀
It’s called the spread, and it helps explain why rates are where they are today — and why they may not drop as dramatically as some buyers are hoping.
Mortgage rates tend to follow the 10-year Treasury yield, and the difference between the two is called the spread.
A few years ago, that spread got really wide. In 2023, it reached about 3.19 percentage points. Today, it’s closer to 2.01 points, which is much nearer the long-term average of 1.76%.
That narrowing spread is actually good news. It’s one of the reasons mortgage rates are around the mid-to-high 6% range today instead of potentially being closer to 8%.
But here’s the catch: because the spread has already narrowed quite a bit, there’s less room for rates to fall simply because the spread improves.
Translation? The thing helping keep rates from being higher is also one reason we probably shouldn’t expect a dramatic drop anytime soon.
Annoying? Yes. Important to know? Also yes. 😂
That doesn’t mean you should rush out and buy. It means it’s worth looking at the whole picture — your payment, price range, down payment, seller concessions, and long-term plans — rather than waiting on a rate that may or may not come.
Want to know what today’s numbers actually look like for your situation? Let’s talk. 🏡💛
