According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat during the final two weeks of December. Rates for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans saw little movement from the week before. But, while rates were relatively unchanged, they remained at their highest level since April 2021, which – along with the holiday season – slowed demand for mortgage applications. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says demand fell for both refinance and purchase loans. “Refinance demand continues to dwindle, as many borrowers refinanced in 2020, and in early 2021 – when mortgage rates were around 40 basis points lower,” Kan said. “The purchase market also finished the year on a slower note, with the final week coming in at the weakest since October 2021.” Still, 2021 was a record year for purchase originations and the MBA expects this year to be even stronger. (source)
