Mortgage Applications Snap 3 Weeks Of Decline As 30-Year Rates Fall By The Most In Over A Year
Portfolio Pulse from Piero Cingari
Mortgage applications increased by 2.5% for the week ending Nov. 3, breaking a three-week decline, according to the Mortgage Bankers Association. This coincided with a significant drop in U.S. Treasury yields. The 30-year fixed rate on mortgages averaged 7.61%, a decline of 25 basis points from the previous week. Real estate stocks tracked by the Real Estate Select Sector SPDR Fund (NYSE:XLRE) were up 0.6%. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) and the US 10-Year Treasury Note ETF (NYSE:UTEN) also rose by 5.5% and 2.5% respectively.
November 08, 2023 | 4:41 pm
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POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose by 5.5% as U.S. Treasury yields dropped.
The drop in U.S. Treasury yields likely led to an increase in the price of the TLT ETF, which invests in U.S. Treasuries.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The US 10-Year Treasury Note ETF (UTEN) rose by 2.5% as U.S. Treasury yields dropped.
The drop in U.S. Treasury yields likely led to an increase in the price of the UTEN ETF, which invests in U.S. Treasuries.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Real Estate Select Sector SPDR Fund (XLRE) saw a 0.6% increase, potentially due to the rise in mortgage applications and drop in U.S. Treasury yields.
The rise in mortgage applications and drop in U.S. Treasury yields likely boosted investor confidence in real estate, leading to an increase in the XLRE ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80