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MBA Mortgage Applications Rose Last Week, With Questions Over Originations

US DATA
  • MBA mortgage applications ticked up 3% last week (refis 5%, purchases 2%) as the 30Y conforming mortgage rate fell a further 23bps to 6.48% amidst Treasury market volatility.
  • MBA Deputy Chief Econ: “However, mortgage rates have not dropped as much as Treasury rates due to increased MBS market volatility. The spread between the 30-year fixed and 10-year Treasury remained wide at around 300bps, compared to a more typical spread of 180bps.”
  • The mortgage rate is within its recent range of the high of 7.16% from Oct and latest low of 6.18% from early Feb.
  • However, being just applications and not originations, it doesn’t give a full steer on the degree of tightening in lending conditions that is expected amidst the regional banking crisis.

MBA mortgage rate (white), spread to 10Y Tsy yield (red) and purchase applications index (green)Source: Bloomberg

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