Home Loan Application Volume Swells

June 20, 2005 WASHINGTON -- Consumer notice of the recent drop in home loan interest rates has been edified by the tally if last week's home financing application volume, which soared for both mortgage refinancing and purchase loans alike. The Mortgage Bankers Association released its application volume index for week ending June 10 indicating the number of applicants has swelled to the highest level seen since July of 2004.

As a result of interest rates being so low this late into the year, we can likely expect home sales to set a record this year provided rates stay down.

The MBA's index of applicant volume increased to 887 for last week, a significant jump from the prior week's 755.5. The level was the highest experienced in the mortgage market since April 2 of last year.

Home purchase applications rose 10 percent to reach a record 529.3, from 479.3 the previous period. It is forecasted that home sales will go above the 8 million mark in 2005. If this happens it will mark the fifth consecutive record, according to the National Association of Realtors, an industry leader. New home sales should grow by 3.2 percent and sales of pre-owned single family residences are predicted to rise 1.6%.

The MBA's index gauging mortgage refinance applications dramatically lifted 26% to 2967.4. - News by Stockton Marquette.

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