According to the Mortgage Bankers Association's Weekly Applications Survey, total mortgage loan application volume increased 11.9 percent last week due to a significant drop in the average mortgage rate. The Refinance Index was up 11 percent and the seasonally adjusted Purchase Index rose 12 percent. The previous week's results included an adjustment for the New Year's. Michael Fratantoni, MBA's chief economist, said the drop in rates triggered a pickup in refinance volume, while the change in purchase activity most likely reflects an increase following the holiday season. Still, the gain in purchase demand was more than anticipated and may indicate a strong selling season this coming spring and summer.

The MBA's survey covers more than 75 percent of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.

The feeling in our offices here in Taos and Angel Fire is that all the calls and emails we've been getting is foretelling a great selling season. And this new interest rate decline can only help, and help a lot!

Most buyers interested in this area, for the past three or four years, have been buying homes; land sales haven't been great because it's been cheaper for buyers to purchase a home already built than to buy a piece of land and build. But that could be changing; in the last two weeks I've had land inquiries that I hope will produce two land sales. In January??? Land may be on the rise, and I'm not talking about new islands, either. This is New Mexico.

Come out and visit us this spring or summer. We'll help you find your special piece of Taos or Angel Fire real estate.