More apply for mortgages as rates dip
Posted May 16, 2012
Greetings from Amsterdam!
I traveled through England and Holland Tuesday, and I can tell you firsthand that commerce and tourism are alive and well in Europe.
London and Amsterdam are bustling with visitors, and on the surface things look strong economically, however the entire EU is very concerned about Greece and its economic and political future within the Euro Zone. As you know, this European uncertainty is providing support for U.S. mortgage rates, and will continue to do so until things really begin to improve on this side of the pond.
Back in the U.S., mortgage applications jumped last week due to the continued decline in mortgage rates. For the week ending May 11, applications were up 9.2 percent, with refinances now accounting for almost 75 percent of all mortgage transactions. Home purchases dropped slightly for the week.
According to NAHB's Housing Index, it received a reading of 29 in May, which is now the highest reading the index has seen since May 2007. A great sign for the confidence of builders, and we're seeing that confidence translate nicely into a successful turnaround for Triangle Home Builders here in the first two quarters of 2012.