Mortgage Rates Rise Modestly And This Happens...

Day after day we are told, just wait for rates to rise ("which they 'have' to because economic growth is so strong") and stocks will take off into the next leg of exuberance... why else would the Fed end QE and start more hawkish discussions? (aside from the fact they truly fear broken repo, exuberant markets, and lethargic politicians). Be careful what you wish for... Mortgage rates rose last week, back to the same level they have been at for 3-months, and refinancing activity (adjusted for holidays) collapsed to its lowest since 2008... and home purchase activity tumble back towards 20-year lows.

Rates up... mortgage activity collapses...

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