Economic data started coming in early this morning. The Mortgage Bankers’ Association released their Weekly Application Index at 7am. This index tracks the weekly change in mortgage applications at major lenders. Much like last week’s report, today’s report continues to show more weakness in the housing market. Applications for home purchases fell 5.2% and the refinance activity posted a 16.2% drop! With interest rates edging higher last week, it is not surprising to see a drop in the refinance activity. With the first time home buyer tax credit still in effect, it is troubling to have a couple weeks in a row with much less demand.
I recommend floating today.
