Market Update // 03.31.2022

• Mortgage bonds look to continue their rally so far today – up about 5bps with the 10y yield down about 2bp. Mortgage bonds are right in the middle of support and resistance, so today could go either way. Rates should open up where they left off yesterday, and some statistical data points to continued improvement, but we’ll see.
• The MBA released their mortgage application data for last week, showing that Purchase application volume increased by 1.0% and is down 10% year over year. Interest rates were reported at 4.8%, which is 1 1/2% higher than they were this time last year.
• Refinances fell by 15% last week and are now down 60% on a year over year basis. Refinances made up 41% of all transactions, which is down from 45% in the previous week.
• Today, we’ll be getting the Fed’s favorite measure of inflation, the Personal Consumption Expenditures (PCE). The headline data should be built in to the market already, but there is a chance it could move the market if data is different than what’s expected. We’ll keep you up to date on if the market moves.
• Thanks and have a great day!