We've seen some stirrings of good news in the American economy lately, but that doesn't mean that all is rosy. The housing market, which is expected to be the last thing to actually recover when the economy comes back, suffered a setback in figures released this week: U.S. mortgage applications have fallen to their lowest level since last February.
The reason given: Rates on fixed mortgages also jumped to their highest level this year. Those mortgage rates increased because of some of the other improving signs of the economy. But the rising rates, in some ways good news, also made homebuyers more reluctant to buy, stalling out the recovery in the housing market.
All this is a further indication of how difficult it's going to be to get us fully extricated from this mess. Good news in one area can result in problems in another sector of the economy. Expect to see the recovery continue in fits and starts until we are finally back on our feet.
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