Mortgage Application Rate Surges in U.S.

By Kyle Chezum Updated on 10/27/2010

10/27/2010

According to the Mortgage Bankers Association's index, the number of home purchase mortgage applications increased 3.9% this past week.  The number of refinance applications increased 3%.  This is a significant improvement over the previous week, which saw a near-record decrease in mortgage applications.  Experts attribute the sudden surge to a decrease in mortgage rates.

Economist Russell Price states that the market has basically hit bottom and simply needs time to regain traction.  Still, mortgage lending is expected to decrease as a whole over the coming year as foreclosed homes take longer to reach the market due to claims of fraud on the part of some major banks.

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