U.S. MBA mortgage market index sank 6.0%
U.S. MBA mortgage market index sank 6.0% in data released earlier, accompanied by a 2.6% drop in the purchase index and an 8.0% slump in the refinancing index. Mortgage rates shot higher last week after the global fixed income rout and remained defensive heading into the September payrolls report, which had firm underpinnings despite the damp headline data. The average 30-year fixed rate mortgage rose 6 basis points to 3.68% last week, though still at historically low levels. The Fed remains on a hair trigger in terms of the next rate hike and, barring a major exogenous event, that should help keep a floor under rates as some position unwinding continues heading toward the election. For more on the housing sector, see our existing home sales, housing starts and new home sales reports.