In November, the yield on the 10-year Treasury trended upwards while the 30-year fixed-rate mortgage rate, as measured by Freddie Mac’s Primary Mortgage Market Survey (PMMS), continued to fall. Thus, the widely tracked spread between these two indicators, i.e. the spread, narrowed.
The above figure shows that, per the latest month’s data, the spread was as low as 179 basis points, within pre-pandemic ranges. In fact, this spread is the lowest since November 2019, when it was just two basis points lower. In the last partial week of November and first partial week of December, the 30-year fixed-rate mortgage rate (as measured by the PMMS) reached 2.71%, the lowest in recent history.