The Mortgage Bankers Association reported a 26.8 percent increase in mortgage applications last week, led by a surge of refinancing activity. The increase in mortgage volume comes as rates have dropped to 2-year lows on trade and bearish talk from the Federal Reserve. In the latest economic news, inflation remains tepid with the Consumer Price Index up just 0.01 percent in May, according to the Bureau of Labor Statistics. In the bond markets, yields finished just slightly higher for the week after significant volatility in the two weeks prior. Both the 10 and 30-year UST finished 1 basis point higher. Municipals saw a similar move upward with the 10-year MMD up 1 basis point, and the 30-year MMD up 2 basis points.
Interest Rate Observations
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of June 11, 2019.
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