Will Surge In Mortgage Applications Boost Home Sales?

U.S. mortgage applications surged recently, but whether the rise in applications results in increased home sales is uncertain.

I found this comment by Dan Pierce, a portfolio manager at State Street Global Advisors in Boston, in a Reuters article about existing home sales.

"We saw a nice surge in mortgage applications in January, so we are seeing the echo of that in today's [increased] home [sales] figures. As far as home prices go, it reveals how consumers have to lower expectations if they want to sell their house. The regulators aggressive liquidity actions are definitely having an impact."

If his theory is correct, shouldn't sales rise in April? Only time will tell.