Mortgage demand did something we have only seen once before in the last three months, it rose. Total mortgage demand was up 3.2% for the week ending December 9th, according to the latest weekly survey from the Mortgage Bankers Association.
- Purchase demand was up 4% for the week and is now down 38% when compared to last year.
- Refi demand was up as well with a 3% increase from the previous week but is still down 85% when compared to last year.
Breaking It Down. The refinance share of mortgage activity increased to 29.4% of total applications and the adjustable-rate mortgage share increased slightly to 7.7% of total applications.
Rates. Mortgage rates broke a four-week streak of declines with the 30-year fixed increasing ever so slightly with a 1 basis points increase to 6.42% for the week. Rates are now 312 basis points higher than one year ago.
- The 15-year fixed increased to 5.92% and the 5/1 ARM decreased to 5.58%.
Analysis. Joel Kan, economist at MBA, was slightly optimistic for 2023 despite demand continuing to fall. “The ongoing moderation in home-price growth, along with further declines in mortgage rates, may encourage more buyers to return to the market in the coming months.”