Industry News
Mortgage Industry News
Import Prices Jump 1.1% Last Month
01/12/2011
Import Prices jumped 1.1% last month due to higher fuel and food costs; there was an upward revision to the previous month. MBA mortgage applications were up 2.2%; the Refi index was 4.9% higher and purchases were off 3.7%. The Treasury is scheduled to auction $21B of 10yr notes today (which may be postponed due to inclement weather on the east coast), and $13B of 30yr bonds tomorrow. Right now, the futures market is pricing in an 87% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.40% (3.31% yesterday) and the 2-10 yield spread is at 278bps, steepening 5bps since yesterday morning.
