Consumers upbeat and mortgage applications rise
Posted May 11, 2012
The University of Michigan’s Consumer Sentiment Report came in at a four-year high reading Friday, indicating that consumers are becoming more bullish on the job front. The reading for May came in at 77.8 which was up from a 76.4 reading in April.
Triangle home sales followed that positive consumer trend in April, increasing 4.6 percent in year-over-year data according to the most recent report out from the Triangle Multiple Listing Service.
Mortgage Applications rose 1.7 percent last week according to the Mortgage Bankers Association, and refinancing now accounts for 72 percent of all mortgage transactions. It’s not surprising that we saw an increase in applications, as mortgage rates are now at new historic lows according to the most recent rate report out from Freddie Mac. Affordability is up, and housing momentum really seems to be taking hold here in the Triangle.
The QE3 discussion has been heating up again, and we’re looking forward to receiving some further guidance from the Fed after their next meeting which wraps up June 19-20.
Have a great weekend!