Mortgage applications fall during holidays even as rates sink

Requests for loans to buy homes dropped 0.8% last week

National /
Jan.January 06, 2021 07:00 AM
(Getty)

(Getty)

Low mortgage rates weren’t the presents some might have been hoping for this holiday season.

Despite attractive borrowing costs, an index tracking mortgage applications to buy homes fell 0.8 percent over the past two weeks, seasonally adjusted, from the week of Dec. 14, according to the Mortgage Bankers Association.

The MBA metric, known as the purchase index, is usually a weekly figure, but the survey released Wednesday encompasses the final fortnight of 2020. It was also adjusted to account for holidays.

For the final five weeks of 2020, applications to purchase homes fell in four of them.

Joel Kan, MBA’s head of industry forecasting, said the two-week holiday slump is typical, and expressed optimism for the housing market in 2021.
https://therealdeal.com/national/tag/housing-market/

“The steady demand for homebuying throughout most of 2020 should continue in 2021,” he said in a statement. “MBA is forecasting for purchase originations to rise to $1.59 trillion this year — an all-time high.”

During the mini-slump, rates dropped for the average 30-year, fixed-rate mortgage fell to 2.86 percent from 2.90 percent two weeks earlier. Jumbo rates fell by one basis point to 3.08 percent.

MBA’s index tracking refinance applications over the past two weeks dropped 6 percent compared to the week of Dec. 14.

The MBA’s overall index, which surveys 75 percent of the residential mortgage market for purchase and refinance applications, dropped 4.2 percent, adjusted. The report has been running since 1990.






    Related Articles

    arrow_forward_ios
    Rendering of Sonnen's ecoLinx home battery (Sonnen)
    Off the grid: Developers eye “virtual power plants” for properties
    Off the grid: Developers eye “virtual power plants” for properties
    Hedge fund manager Robert Citrone (Getty)
    This “Tiger Cub” hedge funder owns nearly 10% of Compass
    This “Tiger Cub” hedge funder owns nearly 10% of Compass
    Zynga founder Mark Pincus, Hippo founders Assaf Wand and Eyal Navon, and LinkedIn co-founder Reid Hoffman (Getty, LinkedIn)
    Hippo strikes $5B SPAC deal with LinkedIn, Zynga founders
    Hippo strikes $5B SPAC deal with LinkedIn, Zynga founders
    Opendoor CEO Eric Wu (Opendoor, iStock/Illustration by Alexis Manrodt for The Real Deal)
    Opendoor revenue plunged 45% in 2020
    Opendoor revenue plunged 45% in 2020
    CoStar CEO Andy Florance
    CoStar retreats from failed CoreLogic bid
    CoStar retreats from failed CoreLogic bid
    In 2018, a Brookings Institution study found homes in majority-Black neighborhoods were undervalued by $48,000 on average. (iStock)
    Appraisal Institute taking steps to root out racial bias
    Appraisal Institute taking steps to root out racial bias
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    January home prices up 10% in biggest annual gain in 7 years
    January home prices up 10% in biggest annual gain in 7 years
    (iStock/Illustration by Alexis Manrodt for The Real Deal)
    Mortgage rates surge — and refinance applications sink
    Mortgage rates surge — and refinance applications sink
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...