Mortgage Applications Down?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

First, I want ask:
When you hear news that interest rates are going up or that mortgage applications are down, does this affect your attitude about your job? Or do you find that if keep doing what you do best that it matter little what's going on nationally?

With that said, The Mortgage Bankers Association is reporting was down 0.6% in the week of February 18. This could be a result of a sharp increase in interest rates. 30-year fixed mortgages averaged 5.67% last week.

Personally, I think this may represent an adjustment after greater than expected number of housing starts in January. Even with this news, interest rates still remain historically low.

Your thoughts?

Gray Goose · Joined: 25 Jan 2005 Posts: 32 Location: Edmond, OK

Most mortgage news regarding rates and volume is yesterday's news. Pay no attention. Many times I hear news(sic) reporters tell the listening audience that rates are up when, as a secondary marketing guru, I watched the markets, minute by minute as the rates steadily dropped for 7 or 8 days. ... old news.

As to volume, my company has focused on purchases for many years. Rates go up, rates go down. So long as rates don't hit 18%, people will always purchase homes.

If you focus on refinances, as the bulk of the brokers do, the (lack of) volume cycles always kills off a huge percentage of them. Has a way of cleaning up the industry. It’s a lot like nature; the weak die, the strong survive and put out a better product.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: When you hear news that interest rates are going up or that mortgage applications are down, does this affect your attitude about your job?

I don't have the experience of many of the people here, but honestly I won't let that stuff phase me. If app's are down and rates are higher, it means I need to be a bit more creative in my marketing and actually work a bit harder. It sucks to actually have to work for your money!!