Despite a drop in rates, total demand for mortgages fell 0.6% for the week ending December 17th, according to the latest data from the Mortgage Bankers Association…(MBA)
- REFINANCE index 2% from the previous, but was still down 42% from the same time one year ago.
- PURCHASE index decreased 3% and was down 9% from the same time one year ago.
NOTE: The refinance share of mortgage activity increased to 65.2% of total applications from 63.3% the previous week.
Rates, for the most part, fell for the week ending December 17th…
- 30-YR FIXED average contract interest rate fell 3 basis points to 3.27% which is still 42 basis points higher than the same time one year ago.
- 15-YR FIXED average contract rate actually increased one basis point to 2.59%.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, noted that the average loan size increased for the second week in a row…
- “Both conventional and government purchase applications were down, while the average purchase loan increased for the second straight week to $416,200 – the second highest amount ever. The elevated loan size is an indication that activity is more on the higher end of the market…Home-price appreciation growth remains faster than historical averages and inventory, particularly for starter homes, continues to trail strong demand.”