November 15, 2023 12:10 GMT
Mortgage Applications Nudge Higher With Unchanged 30Y Rate
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- MBA mortgage applications increased 2.8% in the week to Nov 10 to build on the prior week’s 2.5% for the first two consecutive weekly increase since July.
- It was broadly based across purchases (+3%) and refis (+2%).
- The 30Y conforming mortgage rate was unchanged at 7.61%, holding the almost 30bp decline from the late October cycle high of 7.90%.
- This could be due a further decline if yesterday’s post-CPI rally in 10Y yields is maintained (currently 4.465%) and the spread holds at circa 300bps.
MBA 30Y rate (white), 10Y Tsy yield (pink), spread (red) and level of MBA purchase applications (green)Source: Bloomberg