According to recently released data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey, mortgage applications increased 4.5 percent in the week ending January 6.
The data includes an adjustment to account for the New Year's Day holiday, but still measured a significant jump in mortgage applications on a seasonally adjusted basis from one week earlier.
While mortgage applications increased, average mortgage rates continued to decline, according to the recently released Weekly Mortgage Rate Radar by HSH.com.
"We've been holding near-record lows for a number of weeks, so it took only a little downward blip to get us to new record levels," said Keith Gumbinger, vice president of HSH.com. "Potential borrowers who were waiting to get through the busy holiday season before getting refinances or purchases started have been rewarded for their patience."
With the number of mortgage applications increasing, mortgage rates also are expected to increase, which would be a positive sign of recovery for the housing market. Americans may start looking up moving quotes
and pricing their dream homes to take advantage of the low rates before prices jump.