Economics

Mortgage Volume Roars Into 2019

Jan. 9, 2019

According to the latest seasonally-adjusted index data from the Mortgage Bankers Association, overall mortgage application volume increased 23.5 percent the first week of January 2019 over the previous week.

Despite the increase, bolstered by lower mortgage rates and the overall market slowdown at the end of 2018, overall volume was still down 9 percent annually. Applications to purchase a home increased 17 percent week-over-week and 4 percent year-over-year. For refinancing, the recent drop in interest rates to a 9-month low "sparked a mini-boom," with applications growing 35 percent over the previous week to a 6-month high, though annual volume was down 22 percent, CNBC reports.

Just over 10 percent of real estate agents surveyed by the National Association of Realtors said the shutdown was having an impact on their clients. Some reported government employees pulling out of purchase offers and others being denied loans due to loss of income. Some reported nongovernment employees changing their minds on purchases due to overall concern and uncertainty about the economy.

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