Mortgage application up for both refinance and purchase

The Mortgage Bankers Association reports that mortgage applications for both refinance and purchase are up strongly. The four week moving average for the seasonally adjusted Market Index is up 13.5%. Lower Treasury yields and the conservatorship of Fannie Mae and Freddie Mac are helping to push mortgage interest rates down. This is very good news.

Even though housing starts are down, there are plenty of "For Sale" signs waiting for buyers. In fact, it is probably good news that starts are down until the housing inventory numbers fall a lot further.

-- Jack Krupansky