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MBA Jumbo Loan Rates Push Higher In Credit Tightening Sign

US DATA
  • MBA composite mortgage applications increased 7.2% in the week to Jun 9 (refis +6%, purchases +8%), bouncing after four weekly declines.
  • It was helped by a second consecutive dip in the 30y conforming mortgage rate, this time by a more modest 4bps to 6.77%.
  • In contrast, the rate for jumbo loans increased 5bps to 6.79% and a new high for the cycle, pushing the regular-jumbo spread of -2bps into negative territory for the first time since Dec’21.
  • The narrowing to +4bps in late March was seen at the time as a sign of credit tightening before it widened back out to +10-15bps where it has been tracking since then.


30Y conforming rate (white), jumbo loan rate (yellow) and spread (green)Source: Bloomberg

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