Industry News
Mortgage Industry News
Today's Market Color
10/28/2009
MBA Mortgage Applications were off 12.3% last week after dropping 13.7% the week before. GMAC may receive a third government bailout ranging between $2.8B and $5.6B. The Treasury will auction off another $41B of 5yr notes today; treasury volatility, as measured by the MOVE index, is at a 2 year low, showing confidence that the Fed will keep rates "exceptionally low" for an "extended period". Right now, the futures market is pricing in an 90% chance that the Fed keeps rates somewhere between 0% and .25% through January 27th, 2010. Currently, the Ten Year yield is at 3.411% (3.55% yesterday) and the 2-10 yield spread is at 246bps, flattening 8bps since yesterday morning.
