As news of President Trump's latest troubles surrounding former FBI Director James Comey's memo continues to ripple through news channels, markets are squarely in risk off mode.
Market participants are worried that the administration may not be able to enact the financial reforms that are largely priced in, leaving nothing but downside political risk. Consequently, the DJIA is off 276 points, down 1.3%. Treasuries are getting a big lift. The mortgage benchmark 10-year bond yield has fallen to 2.24%. Mortgages are up 37 basis points.
The market is clearly distracted but nonetheless mortgage apps were down -4.1% from last week. Refi's were the smallest portion of application activity since September 2008 as the purchase market is in full swing.