Mortgage applications index surged 32.2% to 1159.4% for the week ending March 20. Lower mortgage rates over the last few weeks are spurring application activity. The purchase index increased 4.2% on the week while refinance applications jumped 41.5%. The contract rate for the 30-year fixed dropped another quarter point or so this week. Refinance applications accounted for 78.5% of all applications, up from a week ago. This combined with better than expected home sales in February bode well for housing activity in March.
Housing starts jumped 22.2% in February to an annualized pace of 583k, much higher than an expected rate of 450k. Single family housing starts edged 1.1% higher last month to a pace of 357k but they remain 51% below the pace in February 2008. Multifamily starts surged 82% to an annual rate of 230k. In a hopeful sign, building permit issuance was led by an 11% gain in the single family sector.
