Strong Demand for Treasury Auctions In a light week for economic data:
the Treasury auctions had the greatest influence on mortgage markets.
Strong auction results, particularly for the 30-yr Treasuries, helped
mortgage rates move lower during the week. (5.0%, 30yr. fixed rate,
conventional loan, 9/11/09)
The data from the housing sector remained encouraging this week. The
Mortgage Bankers Association (MBA) weekly purchase activity index rose
by 10% to the highest level since early January. Combined with last
week's strong reading in the Pending Home Sales index, which showed its
sixth straight monthly increase, the MBA data supports an improving
outlook for new and existing home sales.
* The Beige Book reported that economic activity is stabilizing or
rising in 11 of the Fed's 12 regions
* The Fed's Evans suggested that it's too early for the Fed to
* The value of the US dollar dropped to its lowest level of the
* The Fed purchased $19 billion in agency MBS during the week
Kathleen M. Gillis, MBA
CNN Mortgage, Inc.
Prescott Lakes Office: 928-776-2938