A ‘For Sale’ sign sits on a vacant lot near a new home in Dunlap, Illinois.
Daniel Acker Bloomberg | Getty Images
After a short period in the first half of December, mortgage interest rates rose again to end the year, weighing on mortgage demand.
The number of mortgage applications fell by 13.2% at the end of last week from the previous two weeks, according to the data of the Mortgage Bankers Association. The MBA was closed last week due to holidays.
The average contract interest rate for a 30-year fixed-rate mortgage with a balance paid ($647,200 or less), for loans with a 20% down payment, rose to 6.58% from 6.34% in the last two weeks. At the end of 2021, the rate is 3.33%.
The need for refinancing, which is most sensitive to weekly interest rate changes, fell 16.3% from the previous two weeks and fell 87% from the same period in 2021.
“Mortgage rates are lower than the peak of October 2022, but should be significantly reduced to generate refinancing activity,” said Joel Kan, an MBA economist.
Mortgage applications to buy a house dove 12.2% from two weeks earlier and were down 42% year over year. They ended the year at their lowest point since 1996.
“Sale requests have been affected by the slowdown in home sales in the new and existing parts of the market. Outside of the market,” he said. a Kan, he also pointed to the threat of the general economy.
Mortgage payments started this week, and this year, they are a little lower, but everyone is focused on the important annual jobs report that is expected to be released on Friday. It seems that prices will increase more on data – but it is not clear in which direction they will go.