The Daily Advisor: March 28, 2024
Three Things To Know Today
1. Increased Funding Available for DPP® Program
To further support housing affordability, FHLBank Chicago is increasing the
maximum per member limit available for its Downpayment Plus® (DPP) grant program
to $1 million per member. The increment represents a nearly 43% increase over
the 2023 limit of $700,000.
2. Join Tomorrow’s Institutional Insights Webinar – Invest in Your Community!
Today at 3 p.m., we’re joined by FHLBank Chicago Community Investment Officer, Katie Naftzger, to talk about enhancements to our Community Investment programs in 2024, the positive impact you can make in the communities you serve with FHLBank Chicago support, and answer questions about our Community Investment programs.
3. Holiday Hours | Good Friday
In observance of Good Friday, FHLBank Chicago and the Mortgage Partnership Finance® (MPF®) Program have amended hours for today, March 28, 2024, and Friday, March 29, 2024.
Market Commentary
Treasuries rallied and equities ended the day higher as longer-dated tenors led the advance. The day started with modest gains, and yields maintained a narrow range in the early action. They added to their gains in the late morning, which was followed by an afternoon push to highs that briefly took the ten-year yield below its 50-day moving average. The day finished with yields lower by 2-4 basis points (bps) across the curve, and the spread between the two and ten-year treasury increased to -34 bps. Markets are looking ahead to Friday's Personal Consumption Expenditure (PCE) price index - the Federal Reserve favored inflation gauge - to better assess potential rate cuts this year.
Mortgage Bankers Association (MBA) Mortgage Applications declined by 0.7% in the week ending March 22, following a 1.6% decrease in the prior week. The average interest rate for 30-year
fixed-rate mortgages with conforming loan balances fell by 4 bps to 6.93%. Applications to refinance a home fell by 2% from the previous week, while applications to purchase a home declined slightly by 0.2%.