|10 year government bond yield||0.69%|
|30 year fixed rate mortgage||3.28%|
Stocks are higher this morning on news of further global stimulus and optimism that the COVID crisis is in the rear view mirror. Bonds and MBS are flat.
The MBA reported that 8.4% of mortgages are in some sort of forbearance plan right now. “Although job losses continue at extremely high rates, mortgage servicers are reporting only modest increases in the share of loans in forbearance as of May 17,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “The decline in employment and income is hitting FHA and VA borrowers harder, leading to 11.6 percent of Ginnie Mae loans currently in forbearance.”
Mortgage Applications increased 2.7% last week as purchases increased 3% and refis declined by 0.2%. “The home purchase market continued its path to recovery as various states reopen, leading to more buyers resuming their home search,” said Joel Kan MBA Associate Vice President of Economic and Industry Forecasting. “Purchase applications increased 9 percent last week – the sixth consecutive weekly increase and a jump of 54 percent since early April. Additionally, the purchase loan amount has increased steadily in recent weeks and is now at its highest level since mid-March.” Home purchase applications have increased 54% since early April.
Job losses from COVID show a pretty large regional distribution, with the Northeast and the Midwest bearing the brunt of the losses versus the South and West.