Mortgage Applications Increase Nationwide as Signs of Recovery Strengthen

By Kyle Chezum Updated on 5/25/2011

 

For the fourth week in a row, mortgage applications have increased in the United States, a report from the Mortgage Bankers Association shows.  This past week, the group's mortgage application index edged up 1.1% over the week prior.

One of the primary factors that influenced the increase, as with the previous weeks' increases, was mortgage rates.  Rates on 30 year fixed rate mortgages were down to 4.60% just two weeks ago, the lowest they've been since the record dip seen last fall.  This week, rates have moved up a bit, but not by much.  The Mortgage Bankers Association reports that mortgage rates are still at incredibly low levels, with an average rate of 4.69% for 30 year home loans.

But this most recent increase in loan applications may have been sparked by other changes as well.  The US Government released a report recently that showed an overall improvement in the national job market during the month of April.  A higher number of new jobs were created than in previous months, leading to a increase in consumer confidence

In this same vein, new home sales increased 7.3% during the month, showing evidence that the economic improvement has led to more than just refinances.  This is a good sign, as the sale of new construction may point to sustained economic recovery.