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
|Federal Funds Rate||1.25%||1.25%||0||0.50%||75|
|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
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