Industry News
Mortgage Industry News
MBA Mortgage Applications Dip
10/05/2011
Treasury prices lost ground yesterday after reports surfaced that EU was working on a plan to support imperiled European banks. This reoccurring story removed the luster from the flight to quality bid and sent treasury yields higher. Prices are continuing to edge lower this morning as investors wait for the actual details of the rumored plan. In economic news, the latest release of the MBA mortgage applications index showed a -4.3% dip in activity. Both refinances and purchase posted decreases, -5.2% and -0.8%, respectively. Meanwhile, the ADP employment change report posted a +91k change in payrolls, exceeding analysts’ predictions of +70k. While positive, the ADP report is not heavily weighted by most investors as they wait for the real deal to be posted on Friday. Currently, the 10yr yield is at 1.855% (1.746% Tuesday) and the 2-10 yield spread is at 160bps, steeper by 10 bps since yesterday morning.
