Mortgage refinance demand surges 40% higher after Trump post briefly tanks interest rates

Summary

CNBC's Diana Olick reports that weekly mortgage demand spiked after President Trump's social-media post about ordering Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed bonds briefly pushed the 30-year fixed rate below 6%. Refinance applications surged 40% for the week and were 128% higher year over year, while purchase applications rose 16% week over week and 13% year over year. Mortgage rates then edged higher to start the week.

• Trump post said Fannie Mae and Freddie Mac would buy $200 billion in mortgage-backed bonds.
• The 30-year fixed rate briefly fell below 6% before bouncing higher.
• The MBA weekly average 30-year fixed rate fell to 6.18% from 6.25%.
• Refinance applications jumped 40% week over week and 128% year over year.
• Average refinance loan size rose as larger borrowers are more rate-sensitive.
• Purchase mortgage applications rose 16% week over week and 13% year over year.
• Purchase demand was helped by post-holiday activity, easing home prices, and more inventory.
• Mortgage rates moved slightly higher to start the current week.