FRM Update

January 16, 2018

Mortgage yield spreads versus Treasuries were generally unchanged last week as Treasury yields moved higher across the curve. This increase in MBS yields drove mortgage rates nine basis points higher. Mortgage applications for the week ending January 5 rose 8.3% as purchase apps increased 5.0% and refi apps climbed 11.4%, even though mortgage rates increased during the reference period. Refi apps remain very low: the four-week refi average is now at its second lowest level since 2008.




CMO spreads were unchanged to slightly wider in various types of structures last week, while investor activity was slower than normal due to the focus on year-end close. Investor focus was primarily in full coupon front sequential structures off of 30yr 3% jumbo collateral.


Mortgage Rates and Refinance Activity




Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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