Mortgage applications rise

Home mortgage applications rose to the highest level in three months last week, reported Reuters.

The Mortgage Bankers Association says its seasonally adjusted index of mortgage application activity, a combination of refinancing and home purchase demand, rose 15.5 percent in the week ending March 4.

The MBA’s vice president of research and economics, Mr. Michael Fratantoni, feels this is a product of an economic uptick.

“An improving job market is beginning to pave the way for an improving housing market,” Fratantoni said.

However, certain questions remain. Exactly how much of this progress was from simple refinancing opportunities versus actual purchasing of housing units remains unaddressed. Meanwhile, homeownership rates remain well above the mean historical level, while high numbers of distressed homeowners continue.

That and a 15.5% increase during a period of exceptionally low levels of home sales isn’t necessarily an indication of recovery.