Brian Chappatta, Columnist

American Homeowners Cash In Fast on Low Rates

Mortgage originations surged to a 15-year high at the end of 2019. Technology that makes it easier to refinance probably played a role.

February 12, 2020 at 1:00 PM UTC

By Brian Chappatta

Brian Chappatta is managing editor of Bloomberg News' leveraged finance and distressed debt teams. He was previously managing editor and team leader of its wealth group. Before that he was a Bloomberg Opinion markets and finance columnist and a bonds reporter for Bloomberg News.

Technology has sped up the process.
Photographer: Justin Sullivan/Getty Images

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It turns out Wall Street bond traders aren’t the only ones who can turn quick profits on falling interest rates.

The Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit on Tuesday revealed that mortgage origination volume in the final three months of 2019 soared to $752 billion, the largest since the end of 2005 and up significantly from $528 billion in the third quarter. In a statement, the bank attributed the surge to “a large increase in refinance activities.” Data released Wednesday by the Mortgage Bankers Association showed refinancing activity continued to climb, making up almost two-thirds of applications in the week ended Feb. 7.