Economy

Treasury Yield & Mortgage Rate Spread: Latest Reading — June 5, 2026}

The 10 year treasury mortgage rate spread stood at 1.99% on June 4, 2026, with the 30-year fixed at 6.48% and the 10-year Treasury at 4.49%.

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Current Spread Snapshot

As of the June 4, 2026 FRED reading, the 30-year fixed mortgage rate was 6.48% while the 10-year Treasury yield sat at 4.49%, producing a 10 year treasury mortgage rate spread of 1.99 percentage points. This level remains near the upper end of the range observed since early 2023 and well above the long-term average of roughly 1.6–1.8 points.

Why the Spread Matters

The 10 year treasury mortgage rate spread measures the additional compensation investors demand to hold mortgage-backed securities instead of risk-free Treasuries. A wider spread raises borrowing costs for households even when Treasury yields are stable or falling. In 2026 the spread has averaged close to 200 basis points, reflecting elevated interest-rate volatility and thinner secondary-market liquidity.

Historical Context

Data from YCharts show the spread averaged 1.65 points between 2015 and 2019. During the 2020–2021 refinancing wave it briefly compressed below 1.4 points before widening sharply in 2022. The current 1.99-point gap is the second-widest reading since October 2021, surpassed only by the March 2023 peak of 2.12 points.

Drivers Behind Today’s Levels

Three primary factors keep the spread elevated:

  • Interest-rate volatility: Option-adjusted spreads on agency MBS have remained 25–30 basis points above pre-2022 norms.
  • Supply/demand imbalance: Net MBS issuance has outpaced foreign and bank demand, pushing required yields higher.
  • Regulatory costs: Bank capital rules and liquidity coverage ratios continue to favor Treasury holdings over mortgage assets.

MBA Newslink’s Chart of the Week confirms that mortgage-to-Treasury spreads have tracked one-for-one with the MOVE index of rate volatility since mid-2024.

Regional Mortgage Pricing

While national averages dominate headlines, local pricing can differ. In California, conforming 30-year rates averaged 6.55% on June 4, 2026, 7 basis points above the Freddie Mac survey. Texas posted 6.42% and Florida 6.51%, illustrating modest but measurable state-level variation driven by average loan size and credit profiles.

Weekly Trend Table

Date30-Yr Fixed10-Yr TreasurySpread
2026-05-286.51%4.52%1.99%
2026-06-046.48%4.49%1.99%

Source: FRED daily series.

Outlook Considerations

Forward-looking indicators suggest limited near-term compression. The Treasury yield curve has steepened, with the 10-year/30-year spread reaching 56 basis points—the widest since October 2021. Unless volatility declines or MBS demand rebounds, analysts expect the 10 year treasury mortgage rate spread to remain between 1.85 and 2.10 points through the third quarter.

Borrowers evaluating rate-lock decisions can run live scenarios at HomeRates.ai to compare today’s pricing against forward curves.

Bottom Line

The 10 year treasury mortgage rate spread of 1.99% on June 4, 2026, continues to add nearly two full percentage points to mortgage costs relative to the 10-year Treasury. Homebuyers and refinancers should model payments at current levels rather than assuming a rapid return to pre-2022 spreads.

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