In the week ending January 5, mortgage application volume experienced a notable increase of 9.9%, marking the most substantial surge in a year, as reported by the MBA.
This heightened activity is somewhat attributed to the inherent volatility in data during holiday periods, contributing to the noticeable fluctuations observed in recent weeks.
Applications for refinancing home loans demonstrated a remarkable 19% week-on-week surge and exhibited a substantial 30% increase compared to the same period last year. Meanwhile, applications for mortgages to purchase homes experienced a 6% week-on-week rise.
Freddie Mac's Chief Economist, Sam Khater, noted that mortgage rates have remained relatively stable over the past three weeks, maintaining levels in the mid-six percent range. This stability has modestly bolstered demand among homebuyers.
As of January 11, the contract rate for a 30-year fixed mortgage averaged 6.66%, representing a slight uptick from the previous week's 6.62%, according to Freddie Mac. Overall, these rates persist at levels reminiscent of the summer and remain below the peak values observed during the fall, when they approached 8%.
Comments