Mortgage Applications

The latest survey shows mortgage applications continue to plunge. Refinance applications were down big and purchase applications were up slightly.  The report fails to consider that many of those purchase apps will not move forward with actual closed sales so the home sales data in September/October will show a much more clear picture of what is going on in the real estate market.  Rates are moving higher which means fewer buys and lower values (unless there is a dramatic turn around in net income).  Lenders have seen 60-80% drops in closed volume and that could go higher as these elevated rates remain.