If there has been one trend in the rate hike fallout, it has been the dramatic decline in mortgage applications.
According to a chart from Zero Hedge, mortgage applications have plunged nearly eight percent in the last week. This is the biggest decrease in a year.
At the same time, mortgage rates climbed to two-month highs since the Federal Reserve’s move to raise interest rates for the third time in six months.
Here is the chart:
The housing bubble should be an interesting one to watch in the coming months.
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I’m not clear on why this indicates a housing bubble. I’m thinking it will just mean that more people will be renting, and paying higher rents. No?