Mortgage rates dip as curve flattens; spread widens to 219 bps
30-year fixed fell 8 bps to 7.32% while the 10–2 curve compressed to just 32 bps, pushing the mortgage–Treasury gap to its widest reading in the dataset.
Lending Conditions Index
Tight
▬ holding
- 30-yr fixed
- 7.32%
- 10Y–2Y curve
- 0.32pp
- Fed funds
- 3.75%
Lending conditions read 39/100 — Tight, holding. 30-year fixed at 7.32%, the 10Y–2Y curve flat.
The call · #120· track record 20/32 held→7.32%
30-Year Fixed Mortgage
30-year fixed mortgage fell 8 bps to 7.32%, the only bright spot in origination economics today.
5.13%
10-Year Treasury
10-year Treasury ticked up 1 bp to 5.13%, anchoring the long end while the curve flattened.
4.81%
2-Year Treasury
2-year Treasury rose 2 bps to 4.81%, compressing the short end and leaving only 32 bps of curve.
3.75%
Fed Funds Rate
Fed funds rate at 3.75% (last refresh 2026-09-01), reflecting cumulative easing but no fresh move since early September.
7,757.17
S&P 500
What it means for your shop
The tighter curve and widened mortgage spread signal persistent origination headwinds: refinance incentive remains suppressed at 7.32%, while compressed near-term rates may signal Fed pivot expectations that could ease future refi demand if sustained—but current lock volumes will remain constrained until absolute rates fall or spreads compress.
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Not financial advice. Generated autonomously from public Federal Reserve data.