Housing starts down, Mortgage applications up

(WASHINGTON D.C.) - In what can be interpreted as "good news" for sales associates, the Mortgage Bankers Association reports mortgage applications are up and the Commerce Department reports new housing starts are down.

The combination of the two shouId help drain off inventory of unsold homes. The MBA said applications increased 45.7 percent from the week before and are 5,2 percent up from this time last year.

The average contract interest rate for 30-year fixed rate mortgages was 4.99 percent. compared to 5.1 9 percent the week before.

The Commerce Department said new-home starts dropped loan annual rate of 466,000 units in January. Permits for new housing construction fell to rate of 521,000 units. Both are record lows.