Brean Capital head of fixed income...........>

US MBS: Brean Capital head of fixed income strategy Scott Buchta noted the MBA

mortgage applications index "fell 4.9% for the week ended Dec. 15, 2017, after

falling 2.3% the prior week."

- "The mortgage apps index is now at its lowest level since 2/17/2017, and this

will be the last MBA data release of the year," he said. "Refinancing activity

was down 3.2% (-2.5% last week) while purchase activity was down 5.5% (-1.1%

last week)."

- He added that "on the week, conventional refis were down 3.22%, FHA refis were

down 10.9% and VA refis were up 6.52% as mortgage rates were slightly lower week

over week (MBA's 30yr rate was down 4bps to 4.16% and the Mortgage News Daily

average rate for the week was unchanged at 3.98%). We continue to believe that

the no-point mortgage rate would need to drop below 3.75% to cause any

significant increase in refinancing volumes (current effective mortgage rate is

4.20%, and a 3.75% effective rate would equate to a sub 1.80% 10yr UST)."