US mortgage rates “in panic mode”, applications down

The mortgage market south of the border is suffering some volatility currently as bond market yields have increased leading to a spike in mortgage rates. CNBC reports that the trend is for rates to increase and a senior mortgage loan originator Matt Weave told the broadcaster that the market is “definitely in panic mode” as the Fed gets closer to increasing interest rates. Meanwhile the Mortgage Bankers Association reports that new home loan applications fell last week by a seasonally-adjusted 7.6 per cent from the week before, even after accounting for the Memorial Day holiday. The unadjusted index fell 17 per cent. 

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