With the beginning of QE2 next week, we could see a bigger change in the mortgage rates. It's hard to predict, since some economist are predicting that QE2 will increase inflation and therefore raise mortgage rates in the long run. In fact, it was priced in the last TIPS treasuries (inflation adjusted treasuries) sale as investors took a possible negative return in anticipation of inflation.
Read it allIn four-week moving averages, the seasonally adjusted market index is up 1.4%, the purchase index is down 0.7% and the refinance index is up 1.9%. Refinancings accounted for 82.3% of all mortgage applications last week, down slightly from 82.4% the week earlier. Lower demand for adjustable-rate mortgages lowered that loan's share to 5.3% of applications last week from 5.8% the week prior.