Industry News
Mortgage Industry News
Mortgage Applications Drop
09/07/2011
The flight to quality bid cooled overnight on reports that the Obama administration will request a $300bln jobs package from Congress. The plan, which appears to consist of tax cuts, aid to state and local municipalities and additional spending on infrastructure, has investors shifting money back into equity markets this morning as optimism picks up. In other news, the latest release of the MBA mortgage applications index showed an overall decrease in applications of -4.9%. This is the second consecutive decrease in applications as potential borrowers appear to have been distracted by the Labor Day weekend festivities as well as the east coast cleanup from Hurricane Irene. Refinances dipped -6.3% while purchase squeezed out a small +0.2% gain. The rest of the day will be relatively quiet with only the Fed’s Beige book due to be released. Currently, the 10yr yield is at 2.022% (1.946% Tuesday) and the 2-10 yield spread is at 1.82 bps, steeper by 8 bps since yesterday morning
