Last week the Mortgage Bankers Association issued its weekly report. The report stated that there was a slight increase in the number of home loan applications. Other news outlets, including Reuters, reported that, "U.S. home loan demand climbs even as rates surge".

Looking into some figures here Mortgage Bankers Association has brought out that in the week ending on July 6th its mortgage application index rose by 1.1 percent. One reason seen for this to happen is that people who got rejected for home application earlier are now applying. At the current rate, borrowing costs for a $100,000 would be $641.96 per month and this is a steady rise form the $ 632.07 seen just a week earlier.

However, there is absolutely nothing concrete that would indicate a surge in interest rates. In fact year over year, mortgage rates have hardly changed and are still historically low. Current interest rates in the month of July, for a 30 year mortgage are 6.33% and last year it was 6.31% in the same month. In the case of a 15 year mortgage it is now 6.03% and the same time last year, it was 6.01%. In a 1 Year ARM, current mortgage rates stand at 5.48%, but last year, it was 5.54%. All these re-instate the fact that mortgage interest rates are not really changing.

It is this type of sensationalistic journalism that prevents readers from getting an accurate picture of the true state of home market.