Why Mortgage Application Rates Rose Last Week

Apps up, but why?

Good news was released today by the Mortgage Banker’s Association that mortgage applications were up last week despite a dip the week prior. Applications for refinancing of homes ticked up slightly as well, leaving some asking what happened- we were dipping down but last week, despite Thanksgiving, things started looking up.

Karen Goodman of Arch City Homes said, “before the first time buyer tax credit was extended, there were a lot of buyers frantically trying to find a home by the deadline. Torn between buying a home that they didn’t really want so they could get $8,000, or walking away from the money, many of them made the wise decision that $8,000 wasn’t worth buying the wrong house. When the tax credit was extended, these buyers were given a 2nd chance and the Thanksgiving holiday gave them extra time to spend searching for homes on the internet. The result- this week homes are selling.”

Bankruptcies and foreclosures are up while mortgage rates are at record lows and applications are up, and opinions are all over the place, so readers, what do YOU think- is a recovery coming, are we bouncing at the bottom or is this all a distraction?