Do fewer mortgage applications portend trouble? Probably not

Some real estate naysayers suggest a 12 percent weekly decline in mortgage applications foreshadows a slump in home sales.

I wouldn't be so sure of that. If you look more closely at this press release from the Mortgage Bankers Association, the drop off was largely from lack of interest in home refinancing, not home purchases.

Besides, mortgage rates rose to 5 percent the past two weeks after residing in the 4.8-4.9 percent range. People are waiting for a better deal.

Maybe. I hope. Cross your fingers.

Credit scores: Average Joes no longer need apply

Anyone got a lead lined suit? Don't think your good credit score protects you from the fallout from the mortgage meltdown.

After getting whacked by defaults on junk mortgages, lenders are requiring much higher scores for borrowers to qualify for the best rates.

Here's roughly how it works these days: Grade A borrowers now generally need credit scores of 750-760, up from 660-680 two years ago.

Borrowers slightly less credit worthy, the so-called "Alt-A" folks, will need scores of roughly 680, not 620 like before.

As for subprime borrowers, well, you probably know that story. Most of them won't be buying any houses for awhile.