A sharp drop in mortgage activity over the holidays was clearly temporary. Mortgage application volume increased 21.3 percent last week versus the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.
The previous week's reading were adjusted for the New Year's holiday. Mortgage applications were on a roller coaster in December, as some borrows rushed in early in the month to get ahead of a possible Fed rate hike.
"The good news for the new year is that following the holidays, application activity last week resumed at levels just exceeding those observed during early December, suggesting that the purchase market has picked up right where it left off," said Lynn Fisher, MBA's vice president of research and economics.