Mortgage Bonds continue to drift lower with prices opening or “gapping” lower than yesterday’s worst levels…not a good technical signal. However, prices are now resting on a strong layer of support.
In mortgage news, the Mortgage Bankers Association reported that applications to purchase homes as well as to refinance, along with total home loan application volume, fell in the latest week. The decline came despite lower rates in the past month.
Today we have MBA Mortgage applications, down -2.0% vs. +0.4% prior, for the week of February 7th. Purchases were down -5.0% vs. -3.8% prior (-13% YoY) and refinancing slipped -0.2% vs. +2.9% prior (-60.8% YoY). The average rate for a 30-Year conforming loan fell 2 bps to 4.45%. In yesterday’s testimony Yellen stressed the importance of restoring the labor markets and moving towards the Fed’s targeted employment level. The curve has bear steepened with 2s10s up 2 bps.
With Mortgage Bonds resting on support, I am recommending to carefully float. If anything changes, I will get back to you.
In mortgage news, the Mortgage Bankers Association reported that applications to purchase homes as well as to refinance, along with total home loan application volume, fell in the latest week. The decline came despite lower rates in the past month.
Today we have MBA Mortgage applications, down -2.0% vs. +0.4% prior, for the week of February 7th. Purchases were down -5.0% vs. -3.8% prior (-13% YoY) and refinancing slipped -0.2% vs. +2.9% prior (-60.8% YoY). The average rate for a 30-Year conforming loan fell 2 bps to 4.45%. In yesterday’s testimony Yellen stressed the importance of restoring the labor markets and moving towards the Fed’s targeted employment level. The curve has bear steepened with 2s10s up 2 bps.
With Mortgage Bonds resting on support, I am recommending to carefully float. If anything changes, I will get back to you.
