FRM Update

January 22, 2018

Mortgage security yields increased last week and have moved higher this year, as treasury yields and mortgage rates have pushed higher. Mortgage yield spreads versus Treasuries were mixed last week as Treasury yields moved higher across the curve and are currently in the upper end of the trading range. This increase in MBS yields drove mortgage rates 10 to 12bps higher last week and 21 to 23bps higher this year. The MBA Refi Index increased for a second consecutive week, rising 4.4% to 1314, but remains slightly below its 12-month average of 1343. Refinance activity continues to be historically low and range-bound. Housing starts and building permits slowed in December, and homebuilder confidence also slipped, but remains high.









Mortgage Rates and Refinance Activity









Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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