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The housing market, meanwhile, continued to struggle as a report from an industry group showed applications for home mortgages fell last week, pulled lower by a decline in refinancing demand.
Although applications for mortgages were up, refinancing demand dipped to more than a one-year low due to rising interest rates.
Refinancing demand has rocketed again in recent weeks.
Last month the bank laid off 600 employees in its mortgage division which has faced headwinds amid a slowdown in refinancing demand.
Last month, the bank laid off 600 employees in its mortgage division which has faced headwinds amid a slowdown in refinancing demand.
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Also casting a shadow, applications for home mortgages fell last week as refinance demand faltered, even as mortgage rates hit another record low.
But a series of mistimed and expensive deals, particularly in the Spanish television market, made Prisa open its doors to outside investors to meet the refinancing demands of an army of creditors, led by Santander and HSBC.
As the chart shows floating rate issuance is a long way from its 2006 peak, but as more LBOs refinance, CLO demand for floating rate bonds will rise.
Mortgage rates are low, fueling demand for refinancing.
REUTERS BREAKINGVIEWS Bank of America to Cut Up to 4,000 Mortgage Jobs | "The layoffs are the latest round of job cuts at major banks as rising mortgage rates cut into demand for refinancing home loans," Reuters writes.
On the contrary, many think that the Fed's half-point rate reduction on the morning of Sept. 17 -- just hours before the New York Stock Exchange re-opened after having closed for six days after the terrorist attacks six days previously -- helped unlock a lot of pentup demand for refinancing.
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