Mortgage Apps/Home Sales on the Rise
Both new mortgage and refi applications rose last week, according to a survey by the Mortgage Bankers Association (MBA). The increase in applications is a 17.2% jump from last year at this time and another sign that the housing market is heating up with the temperature.
From the previous week, new mortgage requests climbed over 7 percent. This could be a result of first-time home buyers taking advantage of the $8,000 federal tax credit, which has been expanded for use as additional down payment and closing costs on FHA loans.
In a separate report by the National Association of Realtors, existing home sales also went up in May for a second month in a row. It’s the first time the housing market has experienced improvements in home sales for two consecutive months since 2005.
Distressed properties (such as foreclosures and short sales) made up roughly a third of all resales in May. Inventory levels are falling, however there is still a 9-month supply on the market. That means buyers continue to have a good selection of homes to choose from. And, while slightly higher than last month, average mortgage rates continue to offer extremely low interest rates.
Posted at 04:13PM Jun 24, 2009 by Spencer Mason in General Comments[0]
