Highlights
The Mortgage Bankers Association's purchase index jumped up sharply in the Jan. 5 week though the result, despite a special related adjustment, could have been skewed sharply by the shortened holiday week. The purchase index rose 16 percent to 472.8, but the four-week average, at a respectable 426.6 and up 0.5 percent, is probably a more reliable reading.

Loan rates moved down with 30-year fixed mortgages averaging 6.13 percent, down 9 basis points in the week. The refinancing index, likely reflecting the dip in rates, jumped 17 percent to 1,923.8 with refinancings making up 48.4 percent of total loan applications, up 3 tenths in the week.

MBA's data are pointing to a recovery in housing demand, a key economic development that will have to be confirmed by other data beginning with next Wednesday's housing market index. December's full slate of housing data will begin unrolling with housing starts next Thursday.