Applications for home loans on rise as home buyers prepare for summer buys?

Mortgage rates continue their move upward and consumers are taking notice. According to the Mortgage Banker's Association, 30-year fixed mortgage rates have risen to an average of 6.49%, while 1 year ARMs have fallen to 5.96%.

Thus, it appears, potential home buyers are now trying to lock in rates before they rise too high, as applications for new home loans went up around 8% compared to last week. More important, while refinancing activity was up based on the previous week, there is much less refinancing activity now compared to the same time last year.

Therefore, applications are being driven by potential home buyers. As we enter the major home buying season, it appears the so-called Southern California real estate bubble might still have some legs.

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