Home loan applications Idaho increased for the second year in a row as the state continues to recover from the Great Recession, according to housing data submitted by banks and mortgage companies. The AP reports that more construction coupled with more confidence in the housing economy has economists and regulators pointing to more activity throughout the Gem State.

"The strength of any economy, whether it be local or national, depends on spending and how capable we are of spending," said Don Holley, economist professor at Boise State University. "People have been spooked to buy a home coming out of this recession, but my feeling has always been that's it just a matter of time to start seeing a turnaround."

Recovery has been helped with subprime lending taking a dramatic drop with tighter regulations in place as the country has come out the Great Recession, Holley said. Meanwhile, home construction is up, signaling that the excess of new homes that sat vacant during the economic downturn is waning. AP reporter Kimberlee Kruesi has a full report here.