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Mortgage Rates Crank Higher As Spread To Tsys Trends Wider

US
  • The 30Y average contract rate in the earlier MBA data firmed another 7bps to 5.20% in the week for Apr 15.
  • It’s up 200bps on a year ago as the spread with 30Y Tsys continues to trend wider, last at these levels early in the pandemic before mortgage rates adjusted downwards and prior to that close to late 2008/early 2009 levels.

MBA 30Y fixed contract rate (yellow line) and 30Y UST yield (purple) with spread (red)Source: Bloomberg

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