Refinance Demand Sees Sudden Decrease in Final Week of October

By Kyle Chezum Updated on 11/3/2010

11/03/2010

Home purchase mortgage application rates have wavered along a downward trend over recent weeks due to low employment and consumer caution, but a recent decrease in refinance mortgage applications came as a bit of a surprise.  The Mortgage Bankers Association index showed a decrease of 6.4% for refinance applications.

The surprise is that applications rates would be so low while mortgage rates themselves are equally low.  Mortgage rates and application rates are typically inversely correlated.  As mortgage rates continue to hover around record lows, the sudden drop in refinance demand took the mortgage industry by surprise.

For full story, click here.