MortGage Demand Dives Nearly 22% to End 2024

A Sharp Rise in Mortgage Interest Rates Toward the end of December Tols Toll on Mortgage Demand, Hitting Just as the Housing Market Entred Its Typically Slowest Stretch of the Year.

Total MortGage Application Volume for the two weeks ended dec. 27, 2024, Dropped 21.9% Compared With the Week Before that Period, According to the MortGage Bankers Association’s Seasonally Adjusted Index. An additional adjustment was made to account for the christmas holiday. The MBA Released Two Weeks of Data after Being Closed over the holiday.

DURING TIME, The Average Contract Interest Rate for 30-Year Fixed-Rate Mortgages with Conforming Loan Balans of $ 766,550 or Less Incrected to 6.97% from 6.89%, 6.89%, with points 0.677 Cluding the Origination Fee, For Loans With A 20% Down Payment. MortGage Rates, which has been lower than the previous year for much of 2024, was 21 Basis points higher annual.

“MortGage Rates Moved Higher Through the Last Full Week of 2024, Reaching almost 7% for 30-Year Fixed-Rate Loans,” said Mike Fratantoni, CHEF ECONF ECONOMIST AT THE MBA. “Not Surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in declines in both refinance and purchase applications.”

Applications to refinance a home loan, which are most sensitive to interest rate gyrations, fell 36% from two weeks before. Still, they remained 10% higher than the same period one year ago. The refinance share of MortGage Activity Decreased to 39.4% of Total Applications from 44.3% The Previous Week.

Applications for a mortgage to purchase a home fell 13% during the two weeks and was 17% lower than the same period one year ago. While December is typical the Slowest month of the year for home sales, these numbers are seasonally adjusted, and the annual comaarison shows considerable weakness. Who there is more homes on the market now than there was last year at this time, Many of that those houses have been fitting for monthsDue to high prices and higher interest rates.

MortGage Rates Started This Week Above 7% on the 30-Year Fixed, According to a Separate Survey from MortGage News Daily. Given the holidays Falling Midweek this year, there is significant Volatily in all of these numbers.

“There’s no way to know where the bond market will open up on Thursday,” Wrote matthew graham, chiff operating officer at MortGage News Daily. “The Final or First Trading Day of Any Given Year Can See Some Excess Volativity/Momentum for Reasons that have taken care to do with the normal motivations (Economic data, news,, policy changes).”