MBA: Mortgage Applications Surged 8.3% in One Week
By Elizabeth Stewart @ Real Estate Daily
January 19, 2018

Homeowners proved their optimism for the housing market as mortgage applications surged over 8% in the week ending January 5th, 2018. Refinance activity had the highest growth as homeowners are likely anticipating future rate hikes from the Fed.

Key Takeaways

  • Refinance activity surged 11% in the last two weeks
  • Purchase applications increased 5% in the last two weeks
  • The share of adjustable-rate mortgages decreased to 5%, down from 5.3% last week
  • Interest rates remained relatively unchanged across the board

Brief

The real estate industry could be preparing for a fantastic year, but experts seem hesitant to make any premature declarations. So far, the housing market is outperforming predictions on almost every front as roaring economy fuels consumer optimism

Mortgage applications were up a cool 8.3% at the start of the new year. Refinance activity shot through the roof with 11% growth, while purchase activity had a modest 5% growth. The share of refinance mortgage activity increased from 52.9%, up from 52% the week before.

Weekly interest rates for January 5th, 2018:

  • 30-year FRM (conforming loans): increased from 4.22% to 4.23%
  • 30-year FRM (jumbo loans): increased from 4.14% to 4.16%
  • 15-year FRM: increased from 3.64% to 3.66%
  • 5/1-year ARM: decreased from 3.53% to 3.5%

A thriving mortgage market is only one aspect of healthy real estate market, but it is not the only contributing factor. Construction and homeowner trends are also foreshadowing a stronger-than-expected year in 2018.