To paraphrase Paul Revere And The Raiders, “Mortgages keep getting harder to find.”
Mortgage applications decreased 6.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 13, 2023. Applications decreased to their lowest level since 1995, as the 30-year fixed mortgage rate increased for the sixth consecutive week to 7.70 percent – the highest level since November 2000.
The Market Composite Index, a measure of mortgage loan application volume, decreased 6.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 7 percent compared with the previous week. The Refinance Index decreased 10 percent from the previous week and was 12 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 6 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 21 percent lower than the same week one year ago.
And the 10-year Treasury yield keeps rising.
Inflation or cheap mortgages? What’s it going to be??
The iShares 20+ year Treasury Bond ETF (TLT) now down 51% from all-time high.
On the commercial real estate side, we see that the CRE cap rate is now lower than the 10Y Treasury yield.
Confounded Interest - Anthony B. Sanders 
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