If you are in the market for a new home, it is a great time.  There are so many homes for sale that deals are out there.  Of course, if you are also wanting to sell your home first then it may not work out as good.  But regardless, deals are out there to be found.

The Mortgage Bankers Association said that rates have dropped this week and they may continue to do so.  If you are considering a first time home purchase, now may be the best time.  Rates may not be what they have been the last several years but they are still historically low and there are lots of houses to choose from.  That makes for a pretty good combination for first time home buyers who are trying to find a deal…

Rising demand last week for loans to buy homes offset a drop in applications to refinance existing mortgages, leaving mortgage applications little changed from the prior week, an industry group said Thursday.

The Mortgage Bankers Association said its mortgage applications index rose 0.1% to a seasonally adjusted 619.4 in the week ended June 29, nearing its lowest level since mid-February.

The MBA's purchase index rose 2.0% to 437.3. But the refinancing applications gauge dropped 2.6% to this year's low of 1,687.2 on a seasonally adjusted basis.

“We've got a huge amount of inventory to work through, particularly of existing homes. but it looks like demand is holding up here,” said David Kelly, economic adviser at Putnam Investments in Boston.

The MBA's purchase index has been steadily rising, based on a four-week moving average, to its highest levels since January 2006, he said. New-home sales and housing starts looked stronger in the second quarter than in the first, he added.

Home sales might get a kick from falling mortgage rates.

To learn more on this subject, read the complete article below from USA Today:

http://www.usatoday.com/money/economy/housing/2007-07-05-mortgage-apps_N.htm?csp=34

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