Friday, October 19, 2012

Home Loan Applications Soar

It's not surprising that mortgage applications for purchases rose to their highest levels since June last week, as mortgage rates hovered at record lows, the Mortgage Bankers Association reports. 
Loan requests for home purchases, viewed as a leading indicator of future home sales, increased 2.4% for the week ending Oct. 5.  
However, the overall index — which includes applications for refinancing and home purchases — was down slightly for the week, falling 1.2% last week, MBA reported. Applications for refinancing make up the biggest bulk of the index. 
Taken alone, applications for refinancing dropped 2% last week, but still remain at a three-year high in volume, says Mike Fratantoni, MBA’s vice president of research and economics.