Applications for refinancing increased by 12% (seasonally adjusted). The seasonally adjusted purchase applications index rose by 10% from the previous report. On an unadjusted basis, the composite index rose 49% week-over-week.
Although the MBA does not offer any commentary in this week’s report, the steep drop in applications probably has more to do with the holiday season than anything else. The group did not report unadjusted numbers this week, which could mean that those would make the report look even worse.
The refinancing rate remained unchanged, accounting for 82% of all applications.
The average contract interest rate for a conforming 30-year fixed-rate mortgage increased from 3.52% to 3.61%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.75% to 3.78%. The average interest rate for a 15-year fixed-rate mortgage increased from 2.86% to 2.88%.
The contract interest rate for a 5/1 adjustable rate mortgage decreased from 2.65% to 2.64%.
Compared with the week before the Christmas and New Year holidays, the refinance index is up less than 1% and the purchase index is down 2%.
The home-financing and home-buying market is in a typical seasonal lull. Housing inventories are down nearly 24% in 54 metropolitan areas, as home sellers had taken houses off the market for the holiday season. Inventory — and sales — should begin to pick up next month.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
