Mortgage Expert with 20+ Yrs of Experience. Loan originator, speaker, educator and mentor. Former FAMP Miami Chapter President and Executive Committee member and current Continuing Education Instructor.. NMLS 389321
Prepayment and duration risk have inflated the spread between 10 yr Treasury yields and 30 yr fixed mortgage rates. This spread has a historic average of about 180 basis points but has recently been as high as 292 basis points. Relief may be a ways off as both prepayment and duration risk will remain in place until rates move below 5.75-6.25%.
