Even with falling interest rates in recent weeks, mortgage rates are still higher than you'd expect. Mortgage interest rates are usually a little less than two percentage points higher than what you would get on a 10-year Treasury bond. But for the last couple of years that difference has been noticeably higher: 2.6% at the moment. New borrowers have been paying potentially thousands of dollars extra each year on their mortgages. Today on the show, how mortgage interest rates work and why they're currently out of whack ... with new borrowers footing the bill. Related Episodes: Are both rents AND interest rates too dang high? How mortgage rates get made The rat under the Fed's hat AP Macro gets a makeover For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.