The spring increase in home sales may be yielding a slow summer crop
The Mortgage Bankers Association (MBA) released the latest mortgage data this morning. Bad news abounded. As a result of rates moving up over their record lows of around 4.6% a few weeks ago, all leading mortgage indexes fell. Applications fell by 15.8%, Refinance fell by 23.3% and purchase applications dropped 3.5%. This is a significant reversal from the March rise. The raise in rates was triggered by the bond market pushing the yield on the then year note up to 4%. This trend must be reversed immediately for the Fed's recovery plan to work. This issues is only compounded by [...]