With 30-yr mortgage rates 18 BP lower

With 30-yr mortgage rates 18 BP lower last week week at 4.96%, the MBA refinance index was +13.3% at 3470.7 (last week 3063.4) and the purchase index was +7.1% at 253.3. Treasury prices have sold off this week, but mortgage spreads have been tightening on strong buying. Last month, Pimco's Total Return Fund raised its mortgage holdings to 86% from 83%, the highest since at least 1990.