The Daily Advisor: April 15, 2021
Three Things to Know Today
1. Borrowers Benefit From Current, Attractive Pricing
Read our latest Notes From the Mortgage Desk to learn how Mortgage Partnership Finance® (MPF®) pricing remains very competitive for mortgage rates below 3% and other MPF strategies.
2. Remember to Register | Live, Virtual 2021 FHLBank Chicago Member Meetings
Join us for a live, virtual Member Meeting on April 29, featuring industry experts. Hear from our new President and CEO and ask questions to speakers on our virtual stage.
Market Commentary for Wednesday
Commentary for Wednesday: Treasurys sold-off while equities ended mostly lower as banks begin to report Q1 earnings. Yields moved higher in overnight trading and moved higher still in the U.S. morning session. Yields moved off their highs for the day in the afternoon partially offsetting losses ending the day higher and steeper.
MBA mortgage applications declined 3.7% for the week ending April 9, following the prior week’s 5.1% decline. After falling 5% during the week, the refinance index is down 31% compared to the same week one year ago. The purchase index decreased 1% from the previous week despite the average 30-year fixed mortgage rate dropping 9 basis points (bps) to 3.27%.
Import prices rose 1.2% in March, above expectations of a 0.9% increase. The increase was driven by the 4.8% increase in the price of industrial supplies and the 2% increase in food prices. Export prices rose 2.1% in March, following a 1.6% increase in February. Year-over-year import and export prices are up 6.9% and 9.1%, respectively.
The Federal Reserve released its Beige Book on activity from late February to early April. Economic activity across all districts rose at a moderate pace as consumer spending and job growth picked up. Leisure and hospitality services benefitted from spring break, increased vaccinations, and the continued easing of pandemic restrictions while manufacturing activity continued to expand despite supply chain disruptions. In the Chicago District, economic activity rose moderately with increases in employment and consumer spending as construction and real estate were unchanged during the period.
The morning market update is provided by: