October 20, 2025

Letter on Reducing the 30/10 Spread

ICBA and the Community Home Lenders of America sent a letter to Treasury Secretary Scott Bessent and FHFA Director William Pulte proposing a solution to reduce the historically high long-term mortgage rates relative to long-term Treasury bonds. ICBA and CHLA said they specifically seek actions to reduce the historically wide spread between 30-year mortgage rates and 10-year Treasuries (30/10 spread), which could reduce mortgage rates by 30 basis points or more. ICBA and CHLA also said they believe regulators must address the secular and structural decline in demand for mortgage-backed securities.