Big Drop-Off in Mortgage Applications Spells Trouble for Housing
Regular readers of this column are fully aware that for the past year I have been calling for higher levels of interest rates. I’ve also stated that higher interest rates will have an impact on the housing market and related stocks.
Well, now we are starting to see my forecast come to fruition, as many mortgage-lending operations are seeing the negative impact of higher interest rates on the levels of mortgage origination’s.
At a recent conference, Wells Fargo & Company (NYSE/WFC) stated that it expects mortgage origination’s (new mortgages and refinancing) will drop approximately 30% in the third quarter versus the second quarter of this year.
Continue Reading: Big Drop-Off in Mortgage Applications Spells Trouble for Housing Again