Economic and Fixed Income Insights as of October 11, 2017

Presented by Stifel, Nicolaus & Company, Incorporated

Total mortgage application volume fell 2.1% last week, according to the Mortgage Bankers Association. Refinance activity continued to lag while applications to purchase a home also fell. The weak report was mostly due to higher interest rates. According to Freddie Mac, the average contract interest rate for a 30-year mortgage is 3.85%, its highest level since July.  For the week, taxable interest rates were fractionally higher while tax-exempt interest rates were mostly unchanged. The 10-year UST finished 4 basis points higher to yield 2.36% while the 30-year UST finished 3 basis points higher to yield 2.90%. The 10-year MMD was unchanged at 2.01%, and the 30-year MMD finished 2 basis points lower to yield 2.82%.

Interest Rate Observations

Benchmark Current Previous
Week
(+/-) Change Previous
Year
(+/-) Change
10-Year UST 2.36% 2.32% 4 1.77% 59
30-Year UST 2.90% 2.87% 3 2.50% 40
10-Year MMD 2.01% 2.01% 0 1.70% 31
30-Year MMD 2.82% 2.84% (2) 2.53% 29
Federal Funds Rate 1.25% 1.25% 0 0.50% 75
1-month LIBOR 1.24% 1.24% 0 0.53% 71
SIFMA 0.92% 0.94% (2) 0.87% 5
10-year LIBOR Swap 2.32% 2.28% 4 1.61% 71

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of October 11, 2017

Important Disclosures

This material was prepared by Stifel, Nicolaus & Company, Incorporated (“Stifel”). This material is for informational purposes only and is not an offer or solicitation to purchase or sell any security or instrument or to participate in any trading strategy discussed herein. The information contained is taken from sources believed to be reliable, but is not guaranteed by Stifel as to accuracy or completeness. Past performance is not necessarily a guide to future performance. Stifel does not provide accounting; tax or legal advice and clients are advised to consult with their accounting, tax or legal advisors prior to making any investment decision.

Stifel, Nicolaus & Company, Incorporated is a broker-dealer registered with the United States Securities and Exchange Commission and is a member FINRA, NYSE & SIPC. @ 2017