Industry News
Mortgage Industry News
Mortgage Applications Drop
10/20/2010
Despite the low rates, MBA mortgage applications posted a 10.5% week-over-week drop; the Refi index was down 11%, purchases were 6.7% lower. After Goldman announced a 40% drop in 3Q net income yesterday, Morgan Stanley announced that profits before preferred dividends dropped 83%. Right now, the futures market is pricing in an 87% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.50% (2.55% yesterday) and the 2-10 yield spread is at 214 bps, flattening 5bps since yesterday morning.
