Mortgage applications figures improve in early June
Posted on Wednesday, June 12, 2013 at 8:11:31 PM
Following several consecutive weeks of declines, the number of people nationwide who are seeking residential lending recently increased.
The Mortgage Bankers Association announced in its Weekly Mortgage Applications Survey for the week ending June 7, that home loan loan applications ticked up a seasonally adjusted 5 percent on a weekly basis. Meanwhile, both the Refinance and Purchase Indices improved, each rising 5 percent from the levels recorded the previous week.
The recent hike can be seen as a sign of the strengthening economy, as it came after weeks of repeated mortgage rate increases.
MBA reported average contract interest rates for 30-year fixed-rate mortgages with conforming balances up to $417,500 moved up the highest level seen since March 2012, at 4.15 percent, after being recorded at 4.07 percent the preceding week.
These occurrences may not be the only positive developments that can point toward better times ahead, however, as good news was also seen in the latest Improving Markets Index released by the National Home Builders. The organization's list of U.S. housing markets displaying substantial growth expanded to total 263 in June.
"This is the fifth consecutive month in which the IMI has designated more than 70 percent of U.S. metros as improving," said Rick Judson, chairman of the NAHB.