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MBA Purchase Applications Lowest Since 1995 As Higher Tsy Yields Weigh

  • MBA composite mortgage applications fell -4.2% last week (refis -3%, purchases -5%).
  • It came as the 30Y mortgage rate increase 15bps to 7.31% for the highest since 2000, after the 7.16% the prior week tied with October’s high for the highest since 2001. The rate shouldn’t have come as too much of a surprise as mortgage rates maintained the ~300bp spread to 10Y Treasury yields.
  • As noted in recent weeks, purchase applications have been pushing lower towards February’s cycle lows and the latest -5% drop pushed them through it for the lowest since 1995.

30Y mortgage rate (white), 10Y Tsy yield (pink), spread (red) and purchase applications level (green)Source: Bloomberg

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