Mortgage demand inches higher as interest rates move lower

Applications rose 3.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Mortgage applications to refinance a home loan rose 3% last week from the previous week but were still 85% lower than the same week one year ago. The drop in rates from a high of just over 7% in October added to the still-tiny pool of potential borrowers who could benefit from a refinance.

Mortgage applications to purchase a home rose 4% for the week and were 38% lower than the same week one year ago. That annual comparison is now shrinking slightly as rates drop.

“A friendly enough Fed could easily break the range, but we have our doubts as to how much fuel the Fed will want to add to the fire,” said Matthew Graham, chief operating officer of Mortgage News Daily. “If anything, the Fed is more likely to try to temper the exuberance because the exuberance is counterproductive to the Fed’s goals.”

https://www.cnbc.com/2022/12/14/mortgage-demand-inches-higher-as-interest-rates-move-lower-.html