[video] Quick Take: Mortgage Applications Plunge
Mortgage rates hit the highest levels of the year and, as most would expect, have negatively affected applications. Bharatwaj said the quick plunge shows the unwillingness of buyers to shop for homes and to refinance -- a business that is much more rate-sensitive.
Another problem, she added: There aren't enough homes for sale either.
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However, there is a silver lining. Bharatwaj said higher rates make big banks more profitable with their lending business, which is typically much bigger and broader than its mortgage business.
Overall, that should have a positive effect on the big banks over the long term, she concluded.
-- Written by Bret Kenwell in Petoskey, Mich.