There are signals that mortgage interest rates will go up in near future. Leading indicator for this trend is increase in yields for mortgage-bonds issued by Fannie Mae and Freddie Mac. Upward trend is quite strong as it is persistent since last five days.
Mortgage refinance activity is also slowing down as lending banks are also stalling on existing applications. There is a 21 percent decline in new mortgage refinance requests. Analysts believe that the downward trend is due to recent hikes in mortgage rates which are significantly up from historic low reached earlier this year.
