April 21, 2021 Headlines

The Treasury rally stalled out this morning with rates essentially unchanged from yesterday’s close. US equity markets are pointing to a lower open this morning as concerns over new rounds of lockdowns in countries like Japan where the government is being asked to declare a state of emergency to get a hold on rising COVID-19 cases.

The MBA mortgage applications index increased by 8.6% last week, the prior week’s reading was down 3.7%. Purchase apps were up 5.7% while refis increased by 10.4%. Last week also saw the average 30-year rate fall by 7 bps to 3.20%. Despite last week’s uptick, refinancing activity has slowed when compared to last year which in turn has dampened MBS supply. However, the demand front has not really changed, with the Fed’s continuing to purchase $40 billion on a net basis and depositories continue to add on the margin as loan demand remains tepid. This supply and demand picture has put downward pressure on spreads and has resulted in a strong April for the sector.

Hafizan Hamzah
Director, Investment Management Group

04/21/21MBA Mortgage Applications8.60%-3.70%
04/22/21Chicago Fed Nat Activity Index1.25-1.09
04/22/21Initial Jobless Claims610k576k
04/22/21Continuing Claims3640k3731k
04/22/21Langer Consumer Comfort53.9
04/22/21Leading Index1.00%0.20%
04/22/21Existing Home Sales6.14m6.22m
04/22/21Existing Home Sales MoM-1.40%-6.60%
04/22/21Kansas City Fed Manf. Activity2826
04/23/21Markit US Manufacturing PMI6159.1
04/23/21Markit US Services PMI61.560.4
04/23/21Markit US Composite PMI59.7
04/23/21New Home Sales885k775k
04/23/21New Home Sales MoM14.20%-18.20%

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