Lower spreads = more opportunity for buyers

Good news for homebuyers: mortgage spreads are shrinking. The gap between 10-year Treasury yields and mortgage rates has fallen to its lowest point in over three years.

Why does this matter?

A smaller spread usually means lower mortgage rates—and that translates into more affordability.

• Right now, the spread is about 2.26%.

• It was 2.5% just this summer, and nearly 2.7% a year ago.

• Historically, it averages between 1.5% and 2%, so we still have room to move lower.

  
  

With the Fed expected to cut rates soon, this trend could continue—making homes more affordable and giving buyers extra purchasing power. Even a small rate drop can boost what your clients can afford by tens of thousands of dollars.

Bottom line: this shift may be the nudge hesitant buyers need to step back into the market. Affordable-Home-Sales is here to help you whether you're in the market to buy or sell. Email us at Support@Affordable-Home-Sales