KEY POINTS
  • A sharp drop in interest rates to the lowest level since April sparked a mini-boom in mortgage refinancing.
  • Buyers returning to the market after the holidays may have been inspired by the drop in rates, but stock market volatility and the government shutdown could keep some of those mortgage applications from closing.
  • 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.

The combination of lower mortgage rates and an unusually slow end to 2018 caused mortgage applications to surge to start this year.

Overall volume jumped 23.5 percent last week from the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. An adjustment was also made for the New Year's Day holiday. Volume was still 9 percent lower than a year ago.