Mortgage Applications Fall as Interest Rates Rise

Long-term fixed rates have been on the up escalator as fears over inflation push the market for mortgage loans higher.  Mortgage applications tanked by almost 23% over last week as higher rates on 30-year fixed products; as well as an aversion to better priced mid-term ARM products (such as a 10-year ARM) keep borrowers (those that are left) on the side line.  The application level is still higher by a third over 2007 levels. From Market Watch on the drop in mortgage applications: Mortgage applications filed last week dropped a seasonally adjusted 22.6% from the previous week, as interest rates on fixed-rate mortgages increased, the Mortgage Bankers Association reported Wednesday. Applications for loans to refinance existing mortgages were down 27.9% on a week-to-week basis, whi