Fewer consumers asked for a new home loan this Christmas.
Mortgage applications fell 21.9% for the 14-day period ending Dec. 27 compared to the
"Not surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in both refinance and purchase applications," said Mike Fratantoni, the MBA's senior vice president and chief economist, in a press release.
The average contract interest rate for a 30-year fixed-rate mortgage climbed to 6.97% last week from 6.89% earlier in December, according to the trade group's Weekly Applications Survey. Interest rates were benchmarked around conforming loan balances of $766,550, a cutoff which
Including adjustments for Christmas, the Refinance Index fell 36% in two weeks, and sits 10% higher than the same time a year ago. Purchase applications meanwhile were 13% lower than the prior period.
Not adjusting for the holiday, the MBA's Refi and Purchase indexes dropped 62% and 48% over the two week stretch, respectively.
The latest survey rates for various products are now sitting in the mid-6% to 7% range, with the 30-year jumbo interest rate rising 14 basis points to 7.13%. The 15-year FRM also heated up, increasing to 6.43% to close the year.
Applicants for Federal Housing Administration-insured loans used more points, at 1.05 on average compared to 0.77 in early December. The effective rate for 30-year FHA loans however inched up one basis point to 6.69%.
Only those seeking adjustable-rate mortgages saw relief, with the average contract interest rate ducking under 6% to 5.97% last week.
Despite more anticipated rate cuts by the Federal Reserve, rate relief may not be on the way. Fannie Mae last month suggested rates will waver, but
