The Mortgage Bankers Association Weekly Survey revealed mortgage application demand increased by 4.7 percent last week as compared to two weeks ago. The increase also reflected a 6 percent spike in the Refinance Index as well as a 3 percent improvement in the total number of people asking for mortgage applications to purchase homes for sale and condos for sale.
Demand for Purchase applications (well considered a very good gauge when looking at future home sales) is now up 23 percent higher as compared to the same week last year. The increase in mortgage applications was a well needed boost after several continuous weeks when demand was very low.
MBA's vice president of research and economics Lynn Fisher explained the improvements were a result of average rates for mortgages dropping last week. She was quoted as saying, "Despite recent concerns about the economy, both purchase and refinance applications increased strongly in response to lower interest rates last week. Refinance activity was the highest since May when rates were last at this level. The increase in purchase activity was also notable for this time of year, up 23 percent relative to a year ago.”