Wednesday, September 12, 2007

Mortgage Applications UP... Woo Hoo!! DISCONNECT

Headlines and stories like this one: Mortgage applications rose 5.5% last week: MBA lead the reader to believe that a dip in mortgage rates is spurring the housing market.

Only problem with the Mortgage Bankers application data is this: It doesn't tell you how many applications it takes to get a mortgage. I would imagine mortgage brokers are having to file many applications to get a lender to bite for just one prospective homebuyer. These figures are likely skewed by that minor little detail.

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