I wish I could believe that the real estate industry and mortgage market are making a positive turn but perhaps there is hope! With an increase in pending sales, this data could just mean that we're looking at a brighter coming month. However, I do think that there are more borrowers attempting to refinance out of their ARMs and other riskier mortgage terms but I think the fact that borrowers are reapplying for loans has been influencing the statistics. Great observation Jim!
1. Applicants with failed lenders move elsewhere and create a new loan application.
2. ARM loans are being refinanced into more stable products.
3. Buyers are starting to return to the real estate marketplace. There are too many bargains to ignore.
The part of my personality that is on display in Trulia voices is my writing personality, which is just a slice of my true personality. My writng personality is unguarded, I express my opinions forcefully here, in order to stir things up and get people to think., and to encourage people to make their own posts interesting reading.
I was tough on Matthew for misreading my question. I thought that he changed the meaning of my question on purpose to deflect the thread away from my hypothesis and into an irrelevant fact. I realized that due to spacing limitations imposed by Trulia on the character length of the question, that I could not post it as I had wished, which would have been : "Could the increase in mortgage applications be due to buyers applying to new lenders because the lender that they had previously applied to had closed or stopped making new loans?"
Because of his indignation at my criticism, I must allow that he accidentally rather than purposely reinterpreted the word 'buyers" in my question to read "debtors" Even though he made an innocent mistake, I had the right to point it out. I am sorry that Matthew's feelings were hurt. I am happy for him that applications on his desk are up.
Everyone else realized that I was speaking of loans in process, not loans in servicing. The number of spaces available in the question format do not allow for exhaustive explanations of what each word in the question means.
If you believe that the 8% jump has nothing to do with APPLICATIONS stranded on closed lenders desks, then explain why not. Being the rosy optimist singing RAH-Rah, is admirable, but changing the context of my question is not.