Tax Credit Boosts Loan Demand To Highest Level Since October

In the final week of the home buyer tax credit, demand for loan applications jumped 13 percent to a seven-month high. According to The Mortgage Bankers Association's Weekly Applications Survey (http://www.mbaa.org/NewsandMedia/PressCenter/72721.htm), purchase applications were up for the third consecutive week, rising almost 24 percent over the month before. Also, the average contract interest rate for 30-year fixed-rate mortgages fell to 5.02 percent, the lowest rate since mid-March. More here (http://www.reuters.com/article/idUSTRE63R1U620100505) and here (http://www.calculatedriskblog.com/2010/05/mba-mortgage-purchase-applications.html).