Post Stimulus: Home Buyers Are Phoning Their Bankers Again

by: The Good News Economist

On Wednesday, the Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending June 11, 2010. Their Market Composite Index, a measure of mortgage loan application volume, increased 17.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 29.7% compared with the previous week.

Their Refinance Index increased 21.1% from the previous week. It was the highest Refinance Index recorded in the survey since May 2009.

"Mortgage applications for home purchases increased last week, the first increase in over a month. Refinance applications also picked up significantly over the week," said Michael Fratantoni, MBA’s Vice President of Research and Economics.

Purchase applications dropped sharply as a result of the tax credit expiration, but with rates continuing at historic lows and the spring buying season in full swing applications are rebounding sharply.

The four week moving average for the seasonally adjusted Market Index is now up 3.8% and the average is now up 5.5% for the Refinance Index.