It was a mixed week for mortgage news. Here were some items of interest:

• Mortgage rates rose in the last week of January, breaking a streak of four straight weeks in which those rates declined.
• Mortgage application activity was a mixed bag. New purchase applications increased, but refinancing applications — which had been running hot and heavy — slowed down.
• A Federal Reserve survey reported that 55% of U.S. banks had tightened their mortgage lending standards.
• The service sector of the economy contracted sharply in January, heightening fears that the economy may already have slipped into a recession.
• Oil prices, which were tickling the $100 mark not too long ago, fell below $90 a barrel.

It’s these last two items which may turn out to be the best news of all for mortgage shoppers.

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Mid-January news stories brought some rays of sunshine into the mortgage and housing markets:

• Lower interest rates spurred a resurgence in mortgage application activity
• A new survey indicated a likelihood of stability for most housing markets over the next two years
• Financial institutions are responding to demand by increasing mortgage counseling services

This wave of stories included some good news for homeowners and new buyers alike, but perhaps should be best received by existing mortgage holders.

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