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MBA Flag Diverging Mortgage Rates As Signs Of Credit Tightening

US DATA

MNI: US MBA: MARKET COMPOSITE -4.1% SA THRU MAR 31 WK

* US MBA: 30-YR CONFORMING MORTGAGE RATE 6.40% VS 6.45% PREV


From the press release (here): "Although the mortgage rate for conforming balance loans declined by 5bps over the week to 6.40 percent, the mortgage rate for jumbo loans increased by 9bps to 6.36 percent. While we have seen relative weakness at the high end of the housing market in recent months, the divergence in rates suggests that banks may be tightening credit in response to recent challenges, preserving balance sheet capacity as deposit balances have declined. In recent years, most jumbo loans have been kept on depository balance sheets.”


See the latest banking credit statistics published Friday plus the Dallas Fed lending standards survey which showed only a marginal tightening in conditions here: https://marketnews.com/markets/pdfs/u-s-commercial-banking-update-further-large-deposit-drawdown

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