Mortgage Activity Soars

Mortgage activity soared in the January 11 week, with purchase applications for home mortgages rising a seasonally adjusted 9 percent from the prior week to the highest level since April 2010 and applications for refinancing increasing 19 percent to the highest volume since March of last year. Building upon the prior week's surge, the weekly increase put unadjusted purchase applications 11 percent higher than in the same week a year ago. The refinancing share of mortgage applications increased 1 percentage point to 46.8 percent, the highest level in a year. Slowing global growth, Brexit and a Fed that says it will be patient with future hikes continued to keep rates more than 40 basis points below their peak in November, with the average interest rate on 30-year fixed rate conforming mortgages ($484,350 or less) remaining unchanged from last week at 4.74 percent. The MBA noted that the 11 percent year-on-year gain in purchasing applications is a promising sign of a solid spring market for housing provided rates stay lower, the job market remains strong and inventory continues to grow.