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Mortgage Industry News
Mood and Fitch Confirm US AAA Rating
08/03/2011
Treasury prices are relatively flat this morning as investors seem to be taking a breather from the extraordinary three day rally. Moody’s and Fitch confirmed the US AAA rating as the debt deal finally fell into place yesterday. However, additional steps are most likely necessary if the US is to maintain that rating. This morning’s release of the weekly MBA mortgage index showed a +7.1% bump in overall applications vs -5.0% from last week. The gain is not too surprising given the recent rally in mortgage prices. Refinances increased an impressive +7.8% vs a more modest increase of +5.1% in purchases. Elsewhere, the latest data employment data from Challenger and ADP continue to show a bleak outlook for significant improvement in the US labor market. Currently, the 10yr yield is at 2.613% (2.708% Tuesday) and the 2-10 yield spread is at 228bps.
