More consumers are applying for mortgages in 2012
Posted on Friday, January 27, 2012 at 9:22:46 AM
Mortgage applications increase 23.1 percent from just one week earlier, according to data received from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey that ended January 12, 2012. The jump is unusually high for the index and has experts optimistic about a healthy return of the housing industry.
"With mortgage rates reaching new lows, refinance volume jumped and MBA's refinance index reached its highest level in the last six months," said Michael Fratantoni, MBA's vice president of research and economics. "Purchase activity also increased as buyers returned to the market after the holiday season."
New highs in consumer confidence have contributed to the return to residential financing options, which in turn is resulting in an increase in submitted mortgage applications. Consumers are aware that 30-year fixed mortgage rates are at their lowest point in years and are cautiously attempting to take advantage of new rates in order to lower monthly payments.
New lower payments and an increase in financing options could make this an ideal time for first time homebuyers.