US Mortgage Applications rose by 21.2% last week
Refinancings rose by 30%. This is the highest level in 2 months
Purchases gained by 1.5%
The average rate on 30 year fixed rate loan dropped to 4.89% from 4.96% the month prior. This equaled the lowest rate on record. 15 year mortgages fell to 4.52% from 4.54 last week. This was the lowest rate since June 2003.
Spring is coming and the US officials know it. The mortgage relief program seems to be having some success in keeping rates down and prompting refinancings at the very least. If the purchase index starts to increase, we should see it start to manifest in this weekly number. So as the spring progresses in the US, we will be watching this data very closely for clues. If housing stabilizes this can be enough to bring increased confidence back to the US and stop layoffs. The twin threat remains housing and jobs. This causes bank woes.
Below is the 4 week moving average of the weekly change in the Purchase Index. If this index can start to stay positive for an extended period we may have seen the bottom of prices and the mortgage rates that brings the buyers to the table.
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