The Mortgage Bankers Association reported a 17 percent rise in mortgage loan applications for the week that ended on September 4th 2009. The rush for applications is attributed to lower interest rates.

In the biggest jump since mid-March this year, the Refinance Index increased by 22.5 percent from the week before.

As for interest rates, 30-year, fixed-rate mortgages dropped from 5.15 percent to 5.02 percent. Points increased to 1.23 from 1.09. For 15-year, fixed-rate mortgages dropped to 4.45 percent from 4.57 percent. Points increased from .85 to 1.13. The interest rate for one-year, adjustable rate mortgages decreased from 6.71 percent to 6.69 percent. Points decreased from .2 to .19.

In light of these numbers, it is important to keep in mind that unemployment is still high. A lot of workers have fewer hours and lower wages. The higher demand for loans is certainly good news, but the housing market still faces obstacles in its recovery.

On the upside, the stock market’s recent climbs may restore confidence in businesses. If things begin to level out so that jobs are restored, the housing market will certainly improve. The question is, when is the best time to buy a home? Its up to you to gauge when you think you will get the best deal. When the market recovers, the cost of real estate will begin climbing again. Buy low, sell high, or if you’d like to play it safe, forget investment ideas and only buy a home if you plan to live in it for years to come.

If you are interested in new developments on Maui, we recommend a look at the wonderful Lanikeha project. For vacant land sales, check the Kaanapali Golf Villas. There are also some very nice Puamana Condos for sale. Remember, if you have any questions not answered on our website, you can call (800) 367-5632 or email us at . We would love to assist you. Mahalo!