June 16, 2010
Mortgage applications up, MBA survey finds
The number of mortgage applications has taken an upward swing, a survey by the Mortgage Bankers Association found.
Loan applications jumped a seasonally adjusted 17.7 percent last week from the week before, reports MBA.
More people also put in applications to refinance their mortgages. Last week, an increase of 21.1 percent was recorded from the previous week. MBA says that the rise marks the highest on record since May of last year.
Experts can identify what may have caused an increase of mortgage applications in April, but they are unsure if recovery in the market is permanently on its way.
"While it is clear that purchase applications in May dropped sharply as a result of the tax credit-induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now," said MBA vice president of research and economics Michael Fratantoni.
The tax credit gave $8,000 to first-time homebuyers and $6,500 for repeat buyers who signed a sales contract by the end of April of this year. The credit incentive may have contributed to people closing home sales earlier than they would have otherwise.