Housing remains a soft spot in the economy as mortgage applications continue to drop with rising rates and slumping stocks deterring potential homebuyers. According the Mortgage Bankers Association, volume is down 22% from the year prior. Tech and crude oil prices are weighing on equity markets and driving haven demand, even while the overall tone of the economy remains upbeat. The stock selloff saw debt yields retreat, and the benchmark 10-year UST sits at 3.14%, down 9 basis points from the week prior. Municipal bonds also trended lower and were down 3-6 basis points along the curve.
Interest Rate Observations
Source: Thomson Reuters, Bloomberg. The table above reflects market conditions as of November 13, 2018.
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