The Mortgage Bankers Association announced on Wednesday that the mortgage purchase application rose 5% to 264.3 despite the 30-year fixed rate mortgage jumping from 4.62% to 4.79%.
While the reading of 264.3 is an increase from the previous weeks' reading which was an 8-week low, the 4-week moving average is still down -3.1% for the mortgage purchase application index.
The important question that these numbers bring up is whether or not we will see a surge in home sales during the summer season as many people have been hoping for. What we do know is that as major foreclosure moratoriums have expired in March, we can expect to see a rise in the supply of homes for sale during the next couple of months. Unless there is a surge in demand to absorb this new supply coming to the market, we can expect to see accelerated home value declines in the second half of this year.