Industry News
Mortgage Industry News
Refinance Applications Dip
08/31/2011
Treasury prices are mostly unchanged today as investors continue to debate the likelihood of QEIII. With Friday’s employment report looming on the horizon, markets got an early look at possible outcomes with today’s disappointing ADP report. Employers added 91k new jobs vs forecasts of a 100k gain. In other news, US mortgage applications dipped by -9.6% in the latest release of the MBA’s index. Refinances lead the way lower with a -12.2% drop, meanwhile purchases actually eked out a small +0.9% gain. The overall dip in applications is not too surprising given that much of the eastern seaboard of the US was focused on preparing for and cleaning up after Hurricane Irene. Currently, the 10yr yield is at 2.17% (2.19% Tuesday) and the 2-10 yield spread is at 198 bps, flatter by 2 bps since yesterday morning.
