MBS Weekly Market Commentary Week Ending 6/11/2021

Long-term 30-year yields have fallen to 2.151%, the 10-year is currently yielding 1.46%, and the Fannie Mae 30-year current-coupon spread to the 5/10-year blend tightened to +70.

 

According to data published by Freddie Mac, U.S. 30-year home mortgage rates fell to 2.96% from 2.99%. The average 15-year rate decreased to 2.23%, up from 2.27% a week earlier. Mortgage applications decreased 3.1% in the week that ended June 12th, according to MBA weekly survey data. Refinance applications decreased 5% for the week, and purchases decreased 11%.

Mortgages outperformed Treasuries on Friday, and trading volume was very light. The Fed plans to target $44.9 billion in agency MBS through June 25th, about 10 billion lower than the last few purchase schedules. Economic Calendar:

  • Tuesday: NAHB Housing Index, TIC Flows, Class B Notification
  • Wednesday: Building Permits, Housing Starts, Fed Rate Decision
  • Thursday: Class C Notification