It’s said that there is NOTHING without a consequence and this mornings updated mortgage applications data reiterates that point. To CNBC for the dramatic headline
Mortgage refinance demand plunged 15% last week, but could now reverse
Last week the average rate on the 30-year mortgage with conforming loan balance ($548,250 or less) increased to 3.31% from 3.24%.
The rise in rates caused applications to refinance a home loan to drop 15% for the week.
Mortgage applications to purchase a home rose 5% for the week.
…The increase in rates caused applications to refinance a home loan to drop 15% for the week, seasonally adjusted. An additional adjustment was made for the Thanksgiving holiday. Refinance demand was 41% lower than the same week one year ago. The refinance share of mortgage activity decreased to 59.4% of total applications from 63.1% the previous week.
“Mortgage rates rose for the third week in a row, reducing the refinance incentive for many borrowers. Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18%,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.
AND a visual courtesy of investing.com
So the bad news then reinforcing the good news to come. Hope IS a strategy?