New year opens with more mortgage applications

Home buying activity is on the rise to open the new year, according to HousingPredictor.com.

The Mortgage Bankers Association reported that the number of applications for home mortgages crept up 2.2 percent last week. However, when the index isn’t adjusted for the New Year’s holiday, the numbers are 47.5 percent higher compared to the previous week.

Despite the frigid temperatures across most of the country, a combination of low mortgage rates and lower prices on homes and condos lured buyers into the market. However, refinances also rose slightly, showing that more homeowners are looking to take advantage of the lower rates.