Home purchase applications are at their highest level in almost five years, driving the year-over-year improvement in the Freddie Mac Multi-Indicator Market Index.
The June index is 85, up just 0.08%
The index and its components are benchmarked to 100 and any item below 20 points of that level is considered weak. So even with the large improvement since last June, the purchase application component is thought of as weak.
"Low mortgage rates and consistent job gains are helping to bolster homebuyer demand, which is reflected in the MiMi purchase applications indicator," said Len Kiefer, Freddie Mac deputy chief economist, in a press release.
The other three index components are payment-to-income at 68.7, down 2.19% from a year ago; current on mortgage, 87.0, up 5.19%; and employment, 106.8, up 3.41%.
North Carolina had the largest month-to-month improvement, up 0.91%, while Charlotte was the most improved metropolitan area, up 1.7%. The next three areas with the largest month-to-month improvement were all in upstate New York: Albany, up 1.53%; Syracuse, up 1.49%; and Buffalo, up 1.43%.
Oregon had the largest year-over-year improvement, up 12.28%, while Orlando, Fla., had the largest improvement for a metro area, up 16.85%.
