The market could be stabilizing after dropping off sharply last month because the number of buyers applying for mortgages jumped up last week nearly 18 percent from the previous week.
Also, applications to refinance home loans were also in positive territory with a gain of 21 percent which is the highest level since May 2009 most likely as a result of buyers taking advantage of near-record-low mortgage rates.
Up from 72 percent a week earlier, refinances made up nearly 75 percent of all mortgage activity with new mortgages to purchase homes increasing by 7 percent which is the highest it's been in six weeks.
Together these increased numbers are indeed an encouraging sign for the housing market considering that applications for mortgages had dropped off considerably when the federal tax credits expired at the end of April.
Michael Fratantoni, vice president of research and economics at the trade group said, "Since the tax credit expired we've flattened out, but I would not expect a real robust rebound."
He forecasts buyers will purchase about 5.2 million previously occupied homes this year, up slightly from a year earlier and he also expects home sales to fall about 10 percent from the second quarter to the third.