Index Data Offers Rosier Spring Outlook

According to the Mortgage Bankers Association's latest index data, mortgage application volume grew 3.6 percent last week over the previous week. Applications to buy a home were up 2 percent, the first increase in a month.

Annually, overall volume was down 2.3 percent. Joel Kan, MBA associate VP, tells CNBC, "After four consecutive declines, purchase applications increased almost 2 percent over the week and 2.5 percent compared to a year ago—showing some promise as we edge closer to the spring homebuying season." Anecdotally, some real estate agents report traffic surpassing expectations, aligning with the new data to offer a slightly rosier outlook for spring.

The positive numbers in mortgage application volume are in line with this month's homebuilder sentiment, which rose 4 points, according to a monthly survey from the National Association of Home Builders/Wells Fargo Housing Market Index. That index showed an increase in buyer traffic, sales expectations and current sales conditions in February.

"Ongoing job creation and solid household formations will keep demand firm, but builders will continue to grapple with supply-side headwinds that will dampen more vigorous growth in the single-family sector," said NAHB chief economist Robert Dietz.

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