Mortgage rates rise, applications sink
Posted August 22, 2012
Weekly mortgage applications dropped by 7.4 percent for the week ending Aug. 17 according to the MBA’s weekly mortgage application index. Rising mortgage rates put the brakes on refinancing, which now accounts for 80 percent of all mortgage transactions.
Refinancing declines led the way for the week, dropping 9.2 percent, but home purchases squeezed out an improvement by increasing 0.9 percent.
July existing home sales increased 2.3 percent according to the most recent report out from the National Association of Realtors. Inventories for all homes dropped slightly in July to a 6.4 months’ supply, down from 6.5 months in June.
The 10-year treasury yield, which hit a recent high yield of 1.86 percent on Tuesday, dropped to 1.75 in early trading on Wednesday as Japanese export concerns weighed on the markets.
The markets are watching delivered economic data very carefully right now, as it has become unclear as to whether or not the recent run of better than expected economic data has pushed the need for QE3 off of the Fed’s plate.
Money Magazine delivered two accolades this week for local municipalities. Chapel Hill was ranked the No. 10 Best Place to live on the most recent iteration of Money Magazine’s list of America’s best small cities. Cary was ranked No. 56 on the list. This type of recognition for the Triangle creates continued interest in new Triangle personal and business growth, and helps to solidify the fundamentals for continued strength in Triangle housing and business.