EM LATAM CREDIT: Pemex: Mgmt Change - Neutral

Download Full Report Here

CNN reports that the high-profile 15 August meeting between US President Donald Trump and Russian President Vladimir Putin will take place at Joint Base Elmendorf-Richardson in Anchorage, Alaska. 

• In preparation for Friday’s meeting, Secretary of State Marco Rubio spoke with Russian Foreign Minister Sergey Lavrov on 12 August. “Both sides confirmed their commitment to ensure a successful event,” per a State Department readout.
• At 09:00 ET 14:00 BST, Trump will hold an emergency call with Ukrainian President Volodymyr Zelenskyy and European leaders to discuss the Ukraine war and strategy for the Putin meeting. Zelenskyy, NATO Secretary General Mark Rutte, and several European leaders will dial into the White House from Germany. 

MBA mortgage applications increased to recent highs last week on the back of a rise in volatile refinance applications. Overall levels remains subdued however and new purchase applications continue to point an anemic trend for housing activity. 

• MBA composite mortgage applications increased 10.9% sa last week after trending sideways in recent weeks, for their highest since single weeks in July and April and before that Sep 2024.
• It was however driven by a 23% increase in refis after 5.2% as new purchase applications once again saw relative underperformance with just a 1.4% increase after 1.5%.
• Comparison with 2019 averages: composite applications at 59.5%, new purchases at 62% and refis at 55%.
• These refis are reacting to a recent decline in mortgage rates, with the 30Y conforming rate falling 10bps to 6.67% after a 6bp decline the week prior. It leaves the conforming rate at its lowest since early April.
• 30Y mortgage rate to 10Y swap rate spreads remain at the low end of the 300 +/- 5bp range mostly seen since reciprocal tariffs were first detailed in early April, still wider than the 285bp averaged in Q1.
• Within the mortgage rate details, 30Y jumbo mortgage rates saw a relative correction as they increased 5bps to 6.70%. It saw the regular-jumbo spread slide from +12bp (highest since Oct 2023) to -3bp (lowest since mid-April), tentatively ending what had been a sign of some relative loosening in conditions or perhaps borrowers with higher FICO scores. 

• MNI: US MBA: MARKET COMPOSITE +10.9% SA THRU AUG 08 WK