Booming Borrowing

In the week of January 7th, 2019, total mortgage application volume grew 13.5 percent over the previous week, 0.5 percent annually, to a near 12-month high, according to the Mortgage Bankers Association's seasonally-adjusted index.

In the first week of January 2019, total weekly application volume increased 23 percent. Applications to refinance a home led total volume up, growing 19 percent weekly to a 10-month high. Volume for these loans was down 11 percent annually. CNBC reports that the current drop in interest rates spurred buyers to borrow before another increase, though refinance volume remains historically low.

"Uncertainty regarding the government shutdown, slowing global growth, Brexit, a more patient Fed and a volatile stock market continued to keep rates from increasing," said Mike Fratantoni, MBA's chief economist. "The spring homebuying season is almost upon us, and if rates stay lower, inventory continues to grow, and the job market maintains its strength, we do expect to see a solid spring market."

PB Topical Ref