Mortgage Applications Up Over 30% Last Week

March 27, 2009 by Scott Smolen · Leave a Comment
Filed under: Scott 

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of all applications.  Although overall applications went up so much, nearly 80% of the applications were for refinancing and really is not directly sales.  However the good news is that while homeowners are able to get lower interest rates, they will free up some more cash for other spending.  This may lead to property owners with significant equity, drawing on some of that untapped equity and leveraging it to buy investment homes, or turn their current home into a rental home while buying a new principal residence.  Low FIXED rates will not be here forever, homeowners should take advantage of them while they can.

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  • Scott Says...

    In another sign that the housing market has hit bottom and rebounded the Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2% to 97.6 from a reading of 94.6 in June, and is 12.0% higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7. 6 months of increasing contract activity shows us that there is a very good chance the bottom of the market occurred prior to this rebound. Nobody will know for sure until more time goes by, but the astute consumer should take note.

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