Mortgage purchase applications rise to highest level since end of May
The Mortgage Bankers Association's weekly report showed a glimmer of hope for the housing market: the seasonally adjusted mortgage purchase index jumped 6.3 percent from a week earlier--the highest level since the end of May.
Does this mean the housing market is rebounding? Not quite. The data remains consistent with other indicators market that show new and existing home sales are at record lows. Despite the jump last week, purchase activity is almost 40 percent lower than a year ago before the expiration of the homebuyer's tax credit on April 30.
As a whole, mortgage applications, which include requests for refinancing, fell 1.5 percent from a weak earlier.
Ariana Eunjung Cha
September 8, 2010; 9:32 AM ET
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