It's official — the Brexit bonus to U.S. homeowners is well underway.
A sharp drop in mortgage interest rates is putting more money in their pockets. Total mortgage application volume surged 14 percent for the week ending July 1st from the previous week, according to the Mortgage Bankers Association (MBA). The measure is seasonally adjusted. Application volume is now 66 percent higher than one year ago.
Behind the surge is a refinance boomlet. Applications to refinance home loans jumped 21 percent for the week, and they are now 113.5 percent higher compared to one year ago, when rates were about three quarters of a percentage point higher. A drop in rates for larger, so-called jumbo loans, is leading the refi run. Some of these refinances are cash-out, as borrowers take advantage of higher home values.