Industry News
Mortgage Industry News
Temp Reprieve Over Fears of European Debt
09/08/2010
MBA mortgage applications printed down for the first time in 6 weeks, -1.9%; refinancing declined 3.1% and purchase applications were up 6.3%. A strong bond auction in Portugal provided some temporary reprieve over European debt fears; equities are higher. The Treasury will auction $21B in 10yr notes today and $13B of 30yr bonds tomorrow. Right now, the futures market is pricing in a 94% chance that the Fed keeps rates between 0% and 0.25% through December 14th, 2010. Currently, the Ten Year yield is at 2.657% (2.64% yesterday) and the 2-10 yield spread is at 212bps, flattening 3bps since yesterday morning.
