It is becoming very clear that the increase in mortgage rates are having a significant impact on the housing market. The latest weekly survey from the Mortgage Bankers Association (MBA) mortgage applications showed a collapse in numbers in all areas.
Mortgage applications for the week ending 6 September fell 13.5% from the previous week. It is a five-week low.
Refinancing activity fell 20% to its lowest level since June 2009. The average 30-year mortgage rate rose to 4.80% from 4.73% a week ago.
The house no longer has the wind that used to have.
The fund manager Jeffrey Gundlach, in a webcast, referred to the current bearish trend rate mortgages MBA. But more importantly, he noted that the index never recovered with other major housing indicators.