Economic & Fixed Income Insights, August 8, 2018

The housing market continues to struggle as home prices continue to rise, along with mortgage rates. Total mortgage application volume fell 3% from the previous week, and 17% from a year ago, according to the Mortgage Bankers Association’s seasonally adjusted report. Bond yields finished slightly higher for the week in anticipation of fresh inflation data Thursday and Friday. The 10-year UST ticked up 1 basis point to yield 2.97%, and the 30-year UST finished 4 basis points higher to 3.12%.  Municipal yields trended higher in tandem with Treasuries.  The 10-year MMD was 3 basis points higher for the week to 2.48% and 30-year MMD was 5 basis points higher to 3.06%.

Interest Rate Observations

Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of August 7, 2018.

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