This post will focus mostly on the charts, which many of you have requested, as I need to turn my focus toward a few other things (especially when it comes to giving you a more thorough and tangible piece to share with your clients).  Long story short, mortgages totally suck right now if you're comparing them to Treasuries.  10yr yields are WAY through the floor of all-time lows and mortgage rates still haven't quite made it to September 2012's lowest levels.  What's up with that?

It's nothing to do with G-fees or LLPAs by the way.  Fannie and Freddie's financial documents show us that things haven't changed that much in that regard.  No... it's actually all about the thing that it's always all about!  Specifically, THIS STUFF, or THIS, or THIS.

On to the charts.

The chart above speaks for itself, but the next one, not so much.  This is a spread chart of Treasuries vs MBS current coupon yield (a production-weighted average MBS coupon yield, which isn't exactly as simple as just saying "2.5%" due to prepayment speeds and other variables that can affect an investor's true realized rate of return.  MBS yields are not objective at the time of issuance, unlike Treasuries, so there's a bit of guesswork and modeling involved).  The higher the line, the higher the MBS yield vs 10yr yield.

And a longer-term look at the same line:

Similar concept here, but with actual mortgage rates versus 10yr yields.  I only have daily mortgage rate data that I trust back to 2011.