It appears that many more folks are starting to see that buying a home during a recession — with the low home prices and mortgage interest rates — is a solid financial decision. The fact that mortgage applications are on the rise is one indicator that people are getting ready to buy. Yahoo! News reports that these mortgage applications are of high quality:

“In addition, the quality of the borrowers coming to us has remained high with high FICO scores and low loan-to-value ratios,” he said on Tuesday. “This is an encouraging sign as responsible borrowers looking to purchase or refinance their homes are getting the help they need with low rate, high-quality loans.”

I would imagine that right now refinance is probably the most common type of mortgage application being seen. But buyers are on the prowl as well, looking for good deals and hoping to buy a home at a great price.

This should serve as a warning to those looking to buy or refinance, though. As mortgage applications rise, and as demand increases, mortgage interest rates will start inch up, and home prices will begin a recovery (although true recovery for home prices probably won’t take place for years yet).