The mortgage spread has dropped to its lowest level in more than three years, signifying better rates for home buyers and those looking to refinance, according to an Aug. 26 report from real estate brokerage Redfin.
A lower mortgage spread—the gap between 10-year treasury yields and mortgage rates—indicates lower mortgage rates, with a further decline suggesting a bigger drop in rates, the brokerage said.
The spread was 2.26 percentage points as of Aug. 22, down from about 2.5 at the start of summer and 2.68 a year earlier, Redfin said.
Home buyers are encouraged to sign deals when rates drop. Homeowners looking to refinance who earlier held back due to persistently high rates also may begin stepping forward….