Mortgage Demand Cools
Mortgage applications to purchase a home fell in the two weeks ended Jan. 1, compared with the second week of December, according to the Mortgage Bankers Association (CNBC)
Total mortgage applications decreased 4.2% from two weeks earlier and were adjusted to account for the holidays.
- PURCHASES: The Purchase Index decreased 30% compared with two weeks earlier but was 3% higher than the same week one year ago.
- REFIS: The Refinance Index was down 34% from two weeks ago but was 100% higher the same week one year ago
Apparently mortgage demand is dropping along with rates:
- 30-YR FIXED: The average contract interest rate decreased to 2.86% from 2.90%
- 15-YR FIXED: The average contract interest rate decreased to 2.40% from 2.42%
GOOD NEWS: Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, said in a statement: “Mortgage rates started 2021 close to record lows, most notably with the 30-year fixed rate at 2.86 percent, and the 15-year fixed rate at a survey low of 2.40 percent. The record-low rates for fixed-rate mortgages is good news for borrowers looking to refinance or buy a home, as around 98 percent of all applications are for fixed-rate loans,”