The mortgage application conundrum has been growing consistently since last year. There have been many application troughs combined with infrequent peaks in the national mortgage market arena. Last week, mortgage loan application volume jumped 32.2 percent, according to the Mortgage Bankers Association's (MBA) weekly mortgage application survey.

The application index skyrocketed from 533.9 points to 706 points. The same time last year, the MBA application index had only risen 16.6 percent.

However, home loan application volume was 13 percent less than the previous four weeks. Since, the real estate boom of the first half of the decade, the mortgage and housing market has been going through unswerving corrections.

During the residential real estate heyday, home sellers reigned supreme, as supply couldn’t keep up with demand. But now the reverse is true, it is a buyers’ market, where supply outstrips demand. For it is, the demand for housing has slowed noticeably. Also, foreclosures, subprime mortgages, and adjustable rate mortgages have highlighted concerns among lawmakers and Wall Street. Unlike before, when home buyers lined up to bid for houses; now the roles have reversed. Home buying is the point of advantage, as buyers seek to leverage low home prices.

Whilst, some home buyers are waiting for home prices to drop further, many have decided to start looking for bargains now. Home buyers can help revive demand for home loans such as, fixed rate mortgages, interest- only mortgages, adjustable rate mortgages, 100 percent financing loans, and second mortgages.

The recent jump in applications last week may reflect current market forces of low interest rates on home loan mortgages in conjunction with low home prices. More than half of the home loan applications last week were for mortgage refinancing. Mortgage refinance volume surged 53.9 percent, accounting 57.7 percent of total applications.

Herein, home loan application volumes increased while mortgage rates declined. A 30-year fixed-rate mortgage had an average interest rate of 5.73 percent, down from 6.05 percent two weeks ago. A 15-year fixed-rate mortgage had an average mortgage rate of 5.21 percent down from 5.61 percent two weeks ago.

The MBA survey gives an insight into the lending activity by mortgage lenders and mortgage brokers. Mortgage lenders were ecstatic about the recent jump in applications; it has been a parched market for them in recent many months. Overall, the current mortgage market has been able to afford many home buyers with low interest rates. The time to buy a home has never been better, buy a home at bargain prices.