What We're Hearing

The yield on the 10-year Treasury is just shy of 4% which doesn't bode well for mortgage rates. The Mortgage Bankers Association said application volume fell last week. Meanwhile, a new report from Barclays Bank sees a link between bank TARP repayments and rising rates: " There is no set timeline for [TARP] repayment, but we expect the banks are eager to move quickly -- perhaps as soon as quarter-end. Although the timing is a bit uncertain, we expect TARP repayments will bias the effective fed funds rate higher with a smaller upward effect on general collateral repo rates." As for MBA, it appears the trade group is having some luck renting out the empty office space at its (somewhat) new headquarters in downtown Washington. New leases have been signed (or are about to) for space and according to trade group president John Courson "the last 60 days there's been a real pick up in interest"…