Mortgage demand falls 13.2% until the end of 2022 as interest rates increase once more.

At the conclusion of the previous week, the number of mortgage applications was down 13.2% from two weeks prior.

In comparison to two weeks ago, the average contract interest rate for 30-year fixed-rate mortgages jumped to 6.58% from 6.34%.

The rate was 3.33% at the end of 2021.

Following a brief respite in the first half of December, mortgage interest rates spiked once more to close out the year, reducing demand for mortgages.

The Mortgage Bankers Association’s seasonally adjusted index shows that the number of mortgage applications was down 13.2% at the end of the previous week compared to two weeks earlier. Due to the holidays, the MBA was closed the previous week.

For loans requiring a 20% down payment and conforming sums ($647,200 or less), the average contract interest rate rose from 6.34% to 6.58% in the previous two weeks. The rate was 3.33% at the end of 2021.

Refinancing demand, which is most affected by fluctuations in weekly interest rates, fell by 16.3% from two weeks prior and by 87% from the same period in 2021.

Mortgage rates are lower than their peak levels of October 2022, but they would need to drop further to spur more refinancing, according to MBA economist Joel Kan.

Mortgage applications for house purchases fell 42% yearly and 12.2% from two weeks earlier. The level they were at at year’s conclusion was the lowest since 1996.

 

 

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