Increase in Number of Mortgage Applications

Low interest rates and first time home buyer credit leads to increased demand for mortgages.

Last week, mortgage applications rose to their highest level since the end of May. Interest rates below five percent and the $8,000 first time home buyer tax credit are largely credited with the increase in mortgage applications.

The Mortgage Bankers Association stated that its seasonally adjusted index of mortgage applications finished the week ending September 18, 2009 at its highest level since May 22, 2009. The Mortgage Bankers Association index of mortgage applications tracks both purchase mortgage applications and refinance loans.

Continually rising mortgage applications can be a good sign for the U.S. housing market which has been especially hard hit by the recent recession. Improvements to the housing market could be a sign of stabilization and recovery in our economy.