Mortgage Applications Strong Start In 2008

Mortgage Applications Strong Start In 2008
During the first week of 2008, the number of mortgage applications jumped an amazing 32.2 percent, ending three weeks of sharp declines. Although application volume is still down 13 percent since the downslide, this is good news for a slumping housing market.

Jumping 53.9 percent during the last week, refinance applications accounted for 57.7 percent of total applications, while purchase applications rose 14.7 percent.

The belief that mortgage applications have risen is because banks have tightened lending standards which is forcing borrowers to fill out multiple applications.

With fixed rate mortgages at the lowest level they have been since September of 2005, many homeowners with adjustable rate mortgages have began to look for affordable options to refinance out of their adjustable rate mortgages.

With investors expecting a slower economic growth, they have begun to put their money into safer U.S. Treasury securities, which has helped in the mortgage rate decrease.

Also helping rates to fall is the weak U.S. employment report for December, and increased concerns that the weak housing market will hit corporate earnings pushed the 10 year Treasury prices up which has sent yields to a six week low.

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