After having exhibited a recent drop due to newly-implemented federal regulations, mortgage applications saw a significant increase during the week ending April 5.
The Mortgage Bankers Association reported in its Weekly Mortgage Applications Survey that a seasonally adjusted rise of 4.5 percent in mortgage loan application volume was seen - possibly due to affordable developments in mortgage records. On an unadjusted basis, application submissions grew by 5 percent from figures noted the preceding week.
The organization's Refinance Index reportedly moved up by 6 percent week-over-week, with the refinance share of mortgage activity having improved 1 percent, registering at 75 percent of total applications. Alternatively, the Purchase Index dropped 1 percent on both seasonally adjusted and unadjusted bases from the prior week. However, year-over-year improvement is still apparent, as the unadjusted index registered 3 percent above the level observed during the same week in April 2012.
MBA vice president of research and economics Mike Fratantoni explained the recent dip in the purchase index may have been in response to a hike in Federal Housing Administration insurance premiums and value appreciation of public property records.
"Although total purchase application volume fell last week, there was a significant divergence between the conventional and government markets," Fratantoni said. "Following the April 1 increase in FHA mortgage insurance premiums, government purchase applications fell by almost 14 percent, to their lowest level since February 2013. On the other hand, applications for conventional purchase loans increased by more than 5 percent, bringing the conventional purchase index to its highest level since October 2009 and the highest level since the expiration of the homebuyer tax credit. With these changes, the government share of all purchase loans fell to 30 percent, the lowest level since we began tracking this series in 2011."
Prudential survey sees consumer confidence jump
According to a national survey recently conducted by Prudential Real Estate, the overwhelming majority of American consumers report with confidence that they expect to see the national real estate market and home prices appreciate in coming months.
A reported 77 percent of respondents, announced such estimations, marking a seven-point improvement over figures recorded during a similar study in April 2012. The current survey showed that 96 percent of consumers said homeownership is important to them, and 87 percent announced that low mortgage rates should influence prospective property owners to act.
President of Prudential Real Estate Earl Lee reported that anticipation may be mounting for the spring home buying season, which could possibly see substantial improvement for the country's housing market and economy.
"Consumers are aware that the market is moving and, with growing optimism, more are weighing their homeownership options," Lee said.