Stocks are lower, and Mortgage Bonds are higher so far this morning. The Mortgage Bankers Association released their weekly Mortgage Application data for the week ending March 7th, and the index was reported down 2.1%. The Purchase Index, which bounced back 9% last week, was down 1%. After the recent volatility in the index, it was encouraging to see Purchases remain somewhat stable. However, they are still down 17% from this time last year. Interest rates increased 5bp to 4.52% with 0.29 points paid. This did not help Refinances, which dropped 3% last week.
The technical picture is somewhat clouded after the rollover of -26bp last night, but Mortgage Bonds are trading above the 200-day Moving Average for now. With Bond prices higher and recovering all of their losses from yesterday, we can float rates for now.