The Mortgage Bankers Association (MBA) announced that mortgage purchase applications increased 0.1% last week, while refinancing applications dropped 0.5%, contributing to an overall drop of 0.2% in mortgage applications from the previous week. Analysts say that this is a sign that the spring home buying season is beginning and consumers are taking advantage of low interest rates and low property prices. Seriously, mortgage applications are decreasing, what’s so good about it?
At this point, I don’t see signs of any improvement in the market situation. A 0.1% increase in mortgage purchase applications does not a spring make. Let’s wait for some more consumer activity before drawing any conclusions. Supply is still higher than demand and there are probably fewer consumers who feel bold enough to take a loan or purchase a home. Both sellers and buyers are waiting to see what will happen because no one wants to put their money at risk. I guess it will take several weeks to collect sufficient data to hint at a new market trend.
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