Mortgage Applications Climb Sharply
Demand for home loans swelled 16.6 percent during the week ended Jan. 5, according to the Mortgage Bankers Association.
Requests for purchase loans were up 16.2 percent and refinancing applications rose 17.3 percent.
The strong recovery compares with a 14 percent slide in application volume before Christmas and only a small improvement of 3.6 percent just after the holiday.
Observers say the higher demand for mortgages could signal an impending recovery or that it could be just a fluke — even though the MBA numbers were seasonally adjusted to account for the New Year's holiday.
"I don't think we should talk about a boom for many, many years, but I think this bodes well for the housing industry and economy," says Tapan Munroe, director of the global consulting firm LECG LLC.
Source: Contra Costa Times, Barbara E. Hernandez (01/11/07)© Copyright 2006 Information Inc.