Industry News
Mortgage Industry News
MBA Applications Overall Inch Up
09/21/2011
Treasury prices were hovering near unchanged as investors await the outcome of the two day FOMC meeting. Headlines are filled with "twist" puns as speculation swirls around the likelihood that the Fed will implement a strategy to push yields lower on the long end of the curve by shifting the duration of its portfolio. This would be similar to "Operation Twist" implement in the early 1960’s. Elsewhere, this morning’s release of the MBA mortgage applications index showed an overall increase of 0.6%. Refinances continued to increase by posting a 2.2% gain, but purchases showed a somewhat surprising drop of -4.7%. Later this morning, the Aug US home sales report is expected to report a +1.7% gain, which would reverse a portion of July’s -3.5% decrease. Currently, the 10yr yield is at 1.938% (1.978% Tuesday) and the 2-10 yield spread is at 177 bps, flatter by 4bps since yesterday morning.
