US DATA: Another Crank Tighter In Lending Conditions For Jumbo Loans

• MBA composite mortgage applications increased 3.0% last week after 0.5% the week prior, for a third consecutive increase.
• Both refis & purchases increased +3%, but levels remain historically depressed.
• The latest increase came despite a small nudge higher in the 30Y conforming rate to 6.75% (+2bp).
• More eye-catching though was the 11bp rise in the jumbo equivalent to 6.91%, as lenders more notably tighten relative conditions to larger loans with the -16bp differential (regular – jumbo) the lowest since Aug’21.

MBA 30Y conforming mortgage rates for regular (white) and jumbo (yellow) loansSource: Bloomberg