Yes, mortgage applications were down last week, again. Of course, this is on par for this time of year, when the holidays take over.

Nonetheless, a today's ned Fed Report claims the economy is humming. The labor market is doing well and there is increased business lending. This good news has some banking industry analysts predicting mortgage rates are finally going to start rising over the next couple of months.

The Fed. Report noted that the real estate market was healthy overall, but that some markets had already started to cool. Therefore, rate hikes should be gradual.

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