Mortgage applications increased 21.3% week-over-week for the week ending January 8, according to the Mortgage Bankers Association.
"MBA's purchase mortgage application index reached its second highest level since May 2010 on a seasonally adjusted basis last week, second only to the week prior to the implementation of the Know Before You Owe rules," Lynn Fisher, MBA's vice president of research and economics.
Meanwhile, the refinance index increased 24%; the seasonally adjusted purchase index increased 18%; and the unadjusted purchase index increased 75%.
"Bolstered by strong fourth quarter growth in jobs and continuing low rates, the results are similar to levels we saw in early December, suggesting that the purchase market's strong finish to 2015 may be continuing,” Fisher said. “While refinances also increased on a holiday-adjusted basis, refinance activity was down 38 percent relative to a year ago when rates dove below 4 percent."
The latest mortgage application information is in, and originators have cause for optimism.