PM Market Update

Treasuries and mortgages started slightly weaker this morning with US stock indexes trading better in the futures markets and Europe’s key equity markets improving. The 10 yr from a technical perspective still has difficulty holding below 2.70% (yesterday’s close 2.68%), early this morning the note trading at 2.71%.

The weekly MBA mortgage applications data:

While overall applications for home mortgages continue to fall, applications for home purchases, viewed as a leading gauge of future home sales, are on the rise, the Mortgage Bankers Association reports.

Applications for home purchases rose 2.7 percent for the week ending April 4, the MBA reported Wednesday. On the other hand, a slip in refinancing activity caused the MBA’s overall mortgage application index, which reflects both purchases and refinance applications, to dip 1.6 percent for the week. Refinancing applications tumbled 4.9 percent last week.

Overall application volume has fallen seven of the past eight weeks, mostly attributed to the fall in refinancing applications from a rise in mortgage rates earlier this year.

Last week, however, mortgage rates mostly held steady. The 30-year fixed-rate mortgage was unchanged at a 4.56 percent average, the MBA reports.

I am suggesting to float your interest rate this week unless we see some volatility due to the fact that not much is going on in the market.