For weeks now, there has been a lot of talk about supply as the MBA Refi Index surged; however, not much was being seen on the Street. In part, this was attributed to mortgage bankers bypassing the Street and purchasing directly from their bankers. This trend began to change this week with mortgage banker selling doubling to around $8 billion.

Supply, both literally and figuratively, began to weigh on the market following the announcement from the Mortgage Bankers Association on Wednesday that its Refi Index had hit a record 5253, eclipsing the previous high of 4389 reached in October 1998 during the financial crisis.

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