MBS Weekly Market Commentary Week Ending 3/12/2021

Long-term 30-year yields have risen to 2.382%, the 10-year is currently yielding 1.628%, and the Fannie Mae 30-year current-coupon spread to the 5/10-year blend widened to +73. Treasury yields continue to soar to their highest levels in over a year.

 

*The MBS Market Commentary link will take you to MCT’s website.* According to data published by Freddie Mac, U.S. 30-year home mortgage rates rose to 3.05% from 3.02%. The average 15-year rate remained 2.38%, up from 2.73% a week earlier. Refinance applications decreased 5% for the week, according to the Mortgage Bankers Association. Refinance applications are 43% than this same week a year ago. The purchase index increased 7% from one week earlier.
The 10-year Treasury broke through resistance at 1.59%, and the 30-year 1.5%, 2%, 2.5%, and 3% all ended the week outperforming their Treasury hedges. In the week ahead, the FOMC rate decision is expected bring no changes in policy, however, close attention will be paid to the FOMC’s observations on the current sell-off in the bond market. Economic Calendar:

  • Monday: TIC Flows
  • Tuesday: NAMB Housing Market Index, Class Notification
  • Wednesday: FOMC Rate Decision, MBA Mortgage Applications Index, Housing Starts, Building Permits