Mortgage applications up. Rates still low.
This article was in our Realtor® Magazine and it is encouraging news for the real estate market and for the turnaround we expect here in Naples, Florida.
The volume of applications for home loans rose 11.4 percent last week, the highest level since October 2005, according to the Mortgage Bankers Association.
Lower mortgage rates are the main reason for the surge in financing demand, says Mike Fratantoni, MBA senior economist, who noted that average rates have dipped about 0.8 percentage points since the early summer.
Refinancing also continued to maintain its healthy pace, with requests for refinancings last week increasing 15.8 percent to the highest level since September 2005.
Refinancings represented 52.6 percent of total application activity, which was the largest share since April 2004.
Source: The Wall Street Journal, Rex Nutting (12/14/06)© Copyright 2006 Information Inc.