FRM Update

July 15, 2019


Current-production coupon MBS widened last week with the 15-year wider by 4 bps to 51 bps and the 30-year wider 4 bps to 74 bps. On a nominal basis, mortgage spreads have remained relatively unchanged on the year, as most other sectors have tightened.

The following is a list of actively traded sectors and coupons:

Mortgage Rates and Refinance Activity

Benchmark mortgage rates were relatively stable last week. 15-year mortgage rates ticked up 1 bp to 3.23%, while 30-year mortgage rates decreased 3 bps to 3.80%.

Mortgage applications declined last week, but the positive trend remains.  Mortgage applications for the week ending July 5 fell 2.4% on a 2.3% increase in purchase apps and a 6.5% decline in refi apps.  Purchase applications have slowly been grinding higher, up 11% on a monthly average basis versus year-ago levels.  Despite the weekly decline in refi apps, the 4-week moving average is now up 134% from activity in November.

Michael S. Erhardt, CPA

Senior Vice President, Investment Strategies

Vining Sparks IBG, LP

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