According to the Mortgage Bankers Association, mortgage applications plunged last week to a 14 year low. That’s since 2000. Some attributed the decrease to an increase in rates but depending upon who you listen to, rates stayed where they were from the previous week or at most rose two basis applications fall to 14 year low Hardly enough to make a difference and certainly not enough to cause mortgage rates to go higher.

For 30 year mortgage rates to move even one-quarter of one percent there would need to be a 100 basis point shift.

It seems once numbers are released about anything a reporter has a story to write. After all, that’s the job and certainly applications falling at such a pace are newsworthy but the idea that the dip was due to a sneeze in the average mortgage rates is silly.

When weekly mortgage applications are tallied they’re divided into both purchase and refinance transactions and refinance applications have been on the wane for more than a year now as those who were able to refinance already have. There’s not a lot of room for rates to go lower and have been holding steady for the past four months. Mortgage rates can’t go to 0.00% and that’s what the rate might have to be to fuel another refinance mania.

The point is too many reporters are too quick to get to a story. In fact, that seems to be the model of most media these days whether the topic is sports to celebrity gossip. The person with the scoop before anyone else gets the glory, regardless if very much fact-checking took place to begin with. If real estate investors moved so quickly on investments it would wipe out the industry in a matter of months.