Mortgage Applications rise 4.7%. Purchase index rises by 11%
The Mortgage Applications rose by 4.7% for the week for the 5th increase in a row. The better news from the report is the Purchase Index rose by 11.1%. This is the largest week on week gain since Nov 28, 2008 and only the 10th double digit increase since January 2008. The gain occurred despite the rise in mortgage rate to 4.73% from 4.61%.
As mentioned in the FXDD Today and Tomorrow report from last night (CLICK HERE) and in previous commentary on this site, the weekly Mortgage Application data will be one of the most important economic releases in the coming weeks as the spring/summer housing season gets into full swing. Inventory is still an issue for housing but prices are down and mortgage rates are down making affordability high. A stabilization of housing can only help an economy which is reeling from increased unemployment. It will also help stabilize banks who have already written off much of the losses from the housing issue (presumingly) – if the foothold can be maintained. It is too early to predict a bottom and it would be premature to predict rising housin gprices, but stabilization would be a welcome step forward.
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