According to data from the Mortgage Bankers Association (MBA), applications for mortgages in the USA went up +8.2% which is the first time in the four weeks prior to the end of October 2009, as interest rates on 30-year loans went below 5%.

The MBA said 30-year fixed-rate mortgage borrowing costs, excluding fees, averaged 4.97%, down -0.07% on the week starting 19 th October. The rate however is still higher than the all-time low of 4.61% set in the week ending 27 th March, with interest rates still well below the 6.47% set in October 2008.

The National Association of Realtors stated that pending sales of homes previously owned rose in September to their highest level in almost three years ahead of the 30 th November expiration of the tax credit, which the federal government provides first time buyers with $8,000, has helped pave the way for stabilisation.

The Senate plans to extend the popular home-buying tax credit to April 2010 and at the same time to expand its scope, is expected to be backed by the U.S. House of Representatives, House Majority Leader Steny Hoyer said.