Mortgage Apps Crash Most Since 2009

While The Fed cut rates to zero and unleashed unprecedented QE and backstops, mortgage rates have spiked in the last two weeks...

Source: Bloomberg

So much for "helping Main Street." Amid COVID-19 shutdowns and quarantines and related financial turmoil, general anxiety has taken the shine off a renaissance in the housing market as mortgage applications crashed 29.4% week-over-week - the biggest weekly drop since the financial crisis.

Source: Bloomberg

Home-purchase applications dropped by 14.6% while refinancing applications plummeted 33.8%...

Source: Bloomberg

As Bloomberg notes, the decline in applications is an early sign suggesting home sales will slow and that refinancings are coming off a spike. That follows other data indicating a precipitous dropoff in business activity this month as stores and schools shutter to prevent the spread of the virus.

Source: Bloomberg

And with mREITs collapsing left and right, amid margin calls and liquidity chaos which sparked a massive decoupling between mortgage rates and Treasuries, one wonders, aside from MOAR unprecedented-er action by The Fed to buy more mortgages and reliquify those that borrowed short to lend long...

Source: Bloomberg

After all, we live in bailout nation - so why not?