Last week's big decline in mortgage applications was all about refinancing as the hiccup in...

|By:, SA News Editor

Last week's big decline in mortgage applications was all about refinancing as the hiccup in interest rates slowed business. The overall decline of 7.9% was led by a 9% drop in the refi index, which fell to its lowest level since early July. Strangely, the mortgage REITs are lit up bright red today. Aren't prepayments a key leg of the bear case against them?