Mortgage Application Rate Hits 4-Month Low

By Kyle Chezum Updated on 11/17/2010

11/17/2010

As expected, mortgage rates spiked this past week as bond yields rose, leading to a decrease in new mortgage applications.  The current application rate rests now at a four-month low after a drop of over 14% from the week prior.

Borrowing costs on 30-year fixed-rate mortgages leapt to 4.46%, up from last month’s low of 4.21%, the lowest ever recorded by the Mortgage Bankers Association survey.  It’s still uncertain whether this is a sign of economic recovery or simply market hesitation brought on by uncertainty over the Fed’s quantitative easing plan.

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