Mortgage applications rise in the first week of May
Posted on Thursday, May 10, 2012 at 5:23:14 PM
According to the Mortgage Bankers Association (MBA), mortgage application activity has seen an increase for the week ending on May 4, 2012. The seasonally adjusted index of mortgage activity, which includes refinancing and home purchase demands, increased 1.7 percent.
When the numbers were broken down, the seasonally adjusted index of refinancing applications was up 1.3 percent. In addition, the number of loan requests rose 3.4 percent. This figure is down .82 percent from the seasonally adjusted purchase average. The MBA survey included approximately 75 percent of all U.S. retail residential mortgage applications.
The significant rise in the number of home purchase mortgage applications is following traditional seasonal trends. The spring season typically brings a rise in home purchases as potential homebuyers shake off the chill of winter and move in more favorable weather conditions.
The increase in mortgage applications may result in more residential financing opportunities for people looking to move before autumn of 2012. Consult with a real estate expert or lender to determine if now is an opportune time to buy. While prices are down and mortgage interest rates are historically low, jumping into such a purchase without careful consideration could be detrimental to overall financial health.