Mortgage applications slowed down in the week before Christmas and increased the week after, while interest rates rose to a seven-month high, then retreated again, the Mortgage Bankers Association said Wednesday. Shifts in refinancing were the key factor.
U.S. mortgage rates have grown for five straight weeks, in the last week hitting their highest levels in seven months. Ten-year Treasury note yields have been climbing on inflation concerns, driving the higher rates.
For a while, it seemed the housing crisis had been averted. Now, Gary Shilling, president of economic consulting firm A. Gary Shilling & Co., says that things are likely to get worse. He predicts that housing prices could fall another 20%.
New data from RealtyTrac shows that the real estate market is still on shaky ground. Banks repossessed 95,364 homes in August -- more than in any month since the beginning of the U.S. mortgage crisis.
Some of Friday's top online stories for investors, including why most double-dip predictions are probably wrong, how to play the GM IPO, and one gloom and doom bear's view.
