Mortgage Rates and Applications Up

Fighting logic the Mortgage Bankers Association reports mortgage application rising for the second month in a row despite mortgage rates dramatic jump to 6.47 percent. The volatility in the equities and debt markets are making mortgage rates tough to forecast and borrowers are locking in safety or low payments. Asian and European markets followed the US markets into record drops. Expect today to be another round of recession pricing and fear trading. Although money is still expected to flow to the safety of bonds that money is likely to avoid the MBS market pushing yields down and mortgage rates up.