Diana Olick of CNBC reports this week on the strong start to 2020 for mortgages. Total application volume ballooned 30% last week from the week before, according to Mortgage Bankers Association data. The surge was led by refinancing, which jumped 43% from the prior week. This is not just the time of year, refinances were 109% higher from this time last year according to Olick, due to low-interest rates.
Doug Whiteman of Yahoo Finance explores data this week from the Housing Market Index from the National Association of Home Builders and Wells Fargo that shows that homebuilders have felt more optimistic in December and January 2019 than at any time since July 1999. As such, home starts are hitting 13-year highs, according to Whiteman.
Whiteman also reported last week via Yahoo! Finance that “Mortgage rates are being held down by unsettling world events, including the tense situation with Iran and the U.S.-China tariffs. All of the uncertainty could continue to keep rates low — meaning more opportunities for homebuyers and homeowners to cut their interest costs.”
Alcynna Lloyd of Housing Wire reports on the same news, stating that “the Refinance Index rose by 43% from a week ago, while the seasonally adjusted Purchase Index grew by 16% and the unadjusted Purchase Index increased by 51%.”
Source: Stessa.com newsletter, 1/22/20
