Highlights
MBA's purchase index jumped nearly 15 percent in the Jan. 4 week to 414.0. This index has been on a bumpy ride since August when contraction in the mortgage lending industry led borrowers to file multiple applications. Seasonal and calendar factors related to the holidays likely added to the week's volatility.

The refinance index has generally been less jumpy but not in the latest week, up more than 50 percent to 2,494.2. The jump in refinancing is likely overstated by adjustments but loan rates did drop in the latest week with 30-year fixed mortgages down more than 30 basis points to 5.73 percent. The rise in refinancing, if sustained in future weeks, will be very welcome, allowing homeowners to improve their mortgage terms and finance purchases outside of credit cards.