30-year mortgage rates hit their highest level in a year last week, pushing mortgage applications (both purchase money and refi’s) downward, breaking a 3-week uptrend for mortgage applications.
Let’s be clear: This is a negative occurrence, as fewer mortgage applications invariably means fewer mortgages granted and fewer properties sold. However, its merely a “blip” on the radar screen since a single week of activity does not indicate a pattern.
The important thing to watch is the trend. If mortgage applications continue to fall for several weeks or longer, that is a practical indicator that the housing recovery may have stalled somewhat.
In somewhat related news, Wachovia reported a multi-billion dollar loss in a recent fiscal quarter, and of course blamed it primarily on the housing crisis.
And President Bush and Congressional leaders have apparently come to an agreement on how to bail out Fannie Mae, Freddie Mac and millions of troubled home owners. Wonderful. The government runs to the rescue again – and in the process destroys its own fiscal viability. More about this later.
Thanks for reading FreeRealEstateTraining.com – and be sure to get on our FREE email update list (look in the right sidebar near the top. Thanks and have a great day!