New statistics out from the Mortgage Bankers Association show a steep increase in mortgages applied for over the prior week. New loan applications were up 7.3 percent as new mortgages and refinancing opportunities took center stage.
New home sales were down in January after an especially cold weather pattern covered the country. The previous December had seen fairly strong activity so the drop off was expected by experts.
The Mortgage Bankers Association’s index of applications to buy a home or refinance an existing loan increased 7.3 percent last week to 671.6, from 626.1 the prior week. The group’s gauge of purchase applications rose to a five-week high, while refinancing surged to the highest level since early December.
The figures help bolster the view of Federal Reserve policy makers that the housing market is starting to stabilize and will become less of a drag on the economy. A decline in the average 30-year fixed mortgage rate to a three-month low and cheaper homes are generating buyer interest, economists said.
“Housing demand is finding a base,'’ said David Sloan, senior economist at 4Cast Inc. in New York. “The market isn’t recovering significantly but sales are starting to stabilize.'’ via Bloomberg.com