Mortgage applications always hit a two year low during a booming housing recovery. Right?
30 year mortgage rates have “surged” all the way to 4.58%. If this is all it takes to derail the housing market, imagine what would happen if we were actually having an economic recovery.
Refinancing applications have plunged by 55% in a matter of a few months. So much for that piece of Bernanke’s wealth effect master plan.
I’d still like for someone to explain how purchase applications could be at the same level as 2010 and the same level as 1998, but we are supposedly in the midst of a strong housing recovery that has driven prices up by 13% in the last year. It couldn’t possibly be another Wall Street/Federal Reserve fraudulent bubble. Could it?
I wonder what will happen when mortgage rates hit 6%?