According to the Mortgage Bankers Association’s Weekly Application Survey, demand for mortgage loan applications fell more than 20 percent last week from two weeks earlier. The decline, however, was no surprise. The end of the year is always slow.
Mike Fratantoni, MBA’s senior vice president and chief economist, says this year’s holiday slowdown was aided by higher mortgage rates. “Mortgage rates moved higher through the last full week of 2024 …” Fratantoni said. “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.”
Rates rose across most loan categories, with increases seen 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. Rates for 5/1 ARMs fell over the final two weeks of 2024. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications.
[Source: MBA]
