lowrate.com

The end of July brought a small measure of relief to the housing market as mortgage activity experienced a slight surge.

For the week ending July 30, applications for the purchase of a new home were up 1.5 percent from the previous week, according to the latest applications survey from the Mortgage Bankers Association. Refinancing activity also rose by 1.3 percent from the previous week, and the refinance share of mortgage applications remained flat at 78 percent.

Purchase applications have now increased for three straight weeks and are up 7.1 percent from four weeks ago, a notable trend given that buying has fluctuated wildly since the April 30 expiration of the signing deadline for the federal homebuyer tax credit. Government applications were up 3.4 percent, said the MBA, which could be evidence that homebuyers are attracted by the support and relative security they can get through government home loans. Any stability to the mortgage industry would be welcome at this point.

Refinancing activity has had its ebbs and flows but has largely remained on a steady rise up in recent weeks. Low mortgage rates typically encourage homeowners to consider renegotiating their loan terms.