Home purchase loan index highest since May 2010

Mortgage Applications  (week ended 4/12/2013)

– Purchase Index – Week/Week  +4.0%. Previous weeks were -1.0%, +1.0%. +7.0%. -4.0%, -3.0%, +15% and -5%.

– Refinance Index – Week/Week +5.0%. Previous weeks were +6.0%., -6.0%, +8.0%.,-8.0%, -5.0%, +15% and -3.0%.

– Composite Index Week/Week +4.8%.  Previous weeks were 4.5%, +4.0%, +7.7%, -7.1%, -4.7%. +14.8% and -3.8%.

Bounciness aside, the Purchase Index is showing signs of health and is at its highest level since May 2010. The purchase Index is an indication of where the housing market is headed. The increase in purchase applications is indicating a message opposite to Homebuilder Sentiment.