Rate spread and APOR: how mortgage pricing is compared
Why this site compares lenders by APR minus the average prime offer rate, and what the numbers mean.
Updated October 24, 2026
Mortgage rates moved during 2025, so comparing raw rates across lenders mixes pricing with timing. Regulators solve this with the rate spread: the loan's APR minus the average prime offer rate (APOR) for a comparable loan on the date the rate was locked.
What APOR is
The FFIEC publishes APOR weekly, derived from Freddie Mac's Primary Mortgage Market Survey, by loan term and fixed or adjustable type. It approximates what a prime borrower would be offered that week.
Reading the spread
- A spread near zero means the APR was close to the prime benchmark when the rate was locked.
- Negative spreads are common on VA loans and on loans with large rate buydowns.
- FHA spreads are higher because the APR includes mortgage insurance.
| Loan type (home purchase) | Median rate spread | Middle half |
|---|---|---|
| Conventional | 0.13 pts | -0.15 to 0.45 |
| FHA | 0.44 pts | 0.02 to 0.82 |
| VA | -0.36 pts | -0.67 to -0.04 |
Among profiled lenders, median conventional purchase spreads ranged from -0.26 (10th percentile lender) to 0.44 points (90th percentile). Spreads also depend on borrowers' credit and down payments, which HMDA does not fully capture.
A first-lien loan with a spread of 1.5 points or more (2.5 for jumbo loans) is a "higher-priced mortgage loan" under federal rules, which triggers extra protections such as escrow and appraisal requirements.
Data: FFIEC/CFPB HMDA 2025 public loan/application register; FHFA and HUD 2026 loan limits. Home-purchase figures cover owner-occupied single-family (1–4 unit) site-built homes, first-lien closed-end loans. Methodology