Mortgage rates made modest improvements yesterday thanks to a rally in benchmark Treasuries and mortgage backed securities. The extension of the Monday afternoon rates rally yesterday allowed most lenders to reprice for the better which pushed mortgage borrowing costs lower. Early on today it appeared that mortgage rates would continue to benefit from more rallying in the rates market, but that didn't last long. Since starting the session with gains, MBS prices have fallen rapidly which led to a few lenders repricing for the worse. Two steps forward, two steps back! We had several pieces of economic data released this morning. First, the Mortgage Bankers’ Association released their applications index. The MBA survey covers over 50 percent of all US residential mortgage loan applications...(read more)

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