Despite a decrease in interest rates, mortgage demand fell last week, with applications for both purchase and refinancing declining, according to the Mortgage Bankers Association.
Interest Rates Decrease
Despite a drop in interest rates, mortgage demand declined last week according to the Mortgage Bankers Association’s seasonally adjusted index.
Refinancing and Purchase Applications Decline
Applications to refinance a home loan dropped 2% after a 19% jump the previous week, and applications for mortgage to purchase a home declined 1% for the week.
Market Outlook and Predictions
The Mortgage Bankers Association predicts further declines in mortgage rates, expecting modest growth in new and existing home sales in 2024. They also anticipate a 22% increase in mortgage origination volume to $2 trillion, with a 14% rise in purchase volume and a 56% jump in refinance demand.
Upcoming Data Release
Due to the Christmas holiday, mortgage application data for the weeks ending Dec. 22 and 29 will be released on Jan. 3.