Who could have seen this coming? US mortage applications tumbled 7.4% in the prior week - the biggest drop since 2016 - as mortgage rates rose to two-month highs following the Fed's rate-hike and hawkish jawboning.
The big driver was refis which fell 13% WoW and a stunning 57% year-over-year - the biggest plunge since the taper tantrum.
All data above adjusted for July 4th holiday.
Still - probably good to keep up the normalization - because extreme high home prices, stagnant wages, and soaring rates will help underpin our 'strong' recovery.