Mortgage Applications on the Increase

Mortgage rates are at an all-time low, making many Americans optimistic about owning a home. As a result, mortgage applications have increased this week as well as prompting many homeowners to look into refinancing their homes. 

During the week of July 20, mortgage applications – for both refinancing and new home acquisitions – increased by 0.9%. The portion of mortgage activity accounted for by refinancing loans has also risen to 80.08% from 80.01%. These statistics were published by The Mortgage Bankers Association, based on a survey of three quarters of the of all American mortgage applications, showing positive signs of recovery for the American housing market. 

Earlier this week, it was announced that home sales dropped in June 2012, but realtors were not deterred by the news. Now, it has been reported mortgage applications are on the increase. This is very encouraging news, as the American housing market is still far from recovery. The country needs to see a surge in home purchases, and this could be the first sign of that happening.  It could be the first step towards seeing economic stability across the country, as well.