Mortgages One Of Bove’s Four Apocalyptic Risks For U.S.

Recent news out of the home finance industry has been rather sombre.

The results of a survey by the Mortgage Bankers Association showed that mortgage applications declined 7.2% in the week ending September 5, 2014 compared to the preceding week, as measured by the Market Composite Index which tracks mortgage loan application volume. On a seasonally adjusted basis this index was down 7.2% versus the previous week, and touched its lowest level since December 2000.

The above chart, courtesy of Mortgage News Daily, plots the Market Composite Index versus the 30 Year Fixed Mortgage.  Note that mortgage volume as evidenced by the index has trended inversely to...