Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Mortgage applications are down

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July 14, 2005

Mortgage applications are down

Mortgage Bankers Association reports a sharp decline in consumer applications.

"Mortgage application volume is down 7.2 percent from the previous week, with applications for adjustable rate products experiencing an even steeper decline of 15.8 percent," said Michael Cevarr, MBA's director of member surveys. "As a result, the ARM share of applications, at 27.9 percent, is at its lowest level since March of 2004."

This is interesting and I'd say a bit troublesome trend, and the big question is if it's going to continue. The indicator to look at is 10-year treasury note. As I type its yield went up to 4.188%. Last Friday it was 4.04%. If the sell off continues, yield climbs higher and so will the mortgage rates.

Too many things including inflation, unemployment, oil, foreign bond buyers can influence the trend either way, but the very last thing economy needs these days is higher mortgage rates.

Posted in Mortgages at July 14, 2005 12:29 PM

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