Keep Mortgage Application Increase in Perspective

The MBA (Mortgage Bankers Association) weekly report shows an increase for purchase applications in the week ending March 5.  The one week up tick was 5.7% and the four-week moving average is advancing less than 1% from the previous week.  The most telling metric is that the applications were down 10.7% from the same week a year ago.  Recall that week was the pit of despair for the stock market and came after two disastrous months in housing sales.

This first Friday in March 2010 report is over 10% below the first Friday report from the disaster that existed a year ago.

Calculated Risk provides perspective with the following graph:

The Wall Street Sheet asks: "Are U.S. Homebuyers Sidelined or Surging?" 
If you read the article you'll see they can't answer the question.  One question that will be answered in the next few months:  Did the 2009 tax credit sell ahead and diminish 2010 demand?

Disclosure: No stocks mentioned.