Industry News
Mortgage Industry News
Mortgage Applications Increase Modestly
11/02/2011
Treasury prices has been giving up some of the impressive gains made over the last three sessions. The 10yr is hovering just above 2% as investors await the conclusion of the two-day FOMC meeting. Chatter around a potential Fed QE3 program is starting to increase but most don’t expect any explicit reference from today’s meeting. In other economic news, the Oct ADP employment report posted better than expected results of +110k new jobs versus estimates of a +100k increase. Lastly, the MBA mortgage applications index increased a very modest 0.2%, with purchases increasing +1.85% and refinances actually declining -0.2%. If rates can linger at current levels, the report will likely surge next week based on the pop in yesterday lock activity. Currently, the 10yr yield is at 2.043% (2.019% Tuesday) and the 2-10 yield spread is at 180bps, steeper by 2bps since yesterday morning.
