If you blinked you may have missed it. But on a day that featured another batch of dreadful U.S. economic data, there was a tiny sliver of light: U.S. mortgage applications rose last week.
Actually, soared is more like it. According to the Mortgage Bankers Association, its index of applications to refinance or take out new loans leaped 112 per cent from the previous week – the biggest increase on record – as borrowers rushed to lock in lower mortgage rates.
So does this mean the housing market is poised for recovery? Not likely. But it does show that the government’s efforts to stimulate consumer lending are having the desired effect. Besides, it’s about the only piece of positive news out there, so let’s dig a bit deeper and see what it means.
via reportonbusiness.com: Signs of life in U.S. housing market.
