FRM Update

July 17, 2017

Mortgage yield spreads were unchanged to slightly wider last week as Treasury yields moved lower in response to a continuation of weaker than expected inflation data. Mortgage rates rose last week for the second consecutive week and 30-year mortgage rates pushed above 4%. Mortgage applications fell 7.4% on a 2.5% drop in purchase apps and a 13.0% drop in refi apps, the largest weekly decline in refi apps this year.




Trading activity in CMOs was steady as yield spreads in CMOs were generally unchanged last week. The recent steeping of the curve should be beneficial in increasing supply from new CMO production. Depositories were focused on stable structures with 4- to 6-year average lives.


Rates and Refis

Dan Stimpson, CPA

Senior Vice President

Vining Sparks

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