The Mortgage Bankers Association (MBA) announced on Wednesday that the mortgage
application volume in the U.S. fell 1.5 per cent in the week ended December 15,
following a 7.4 per cent surge the week before. This marked the first weekly
drop in total mortgage application volume in seven weeks.
According to the MBA’s data, last week’s decrease in mortgage
applications reflected
a 1.8 per cent decline in mortgage refinance applications and a 0.6 per cent slip in
mortgage applications to purchase a home.
The report also showed that the average fixed 30-year mortgage rate fell from 7.07
per cent to 6.83 per cent, its lowest level since the week ended June 23 (6.75 per
cent).
Commenting on the latest survey results, Mike Fratantoni,
MBA’s SVP and Chief Economist, noted that mortgage rates declined last week to
the lowest level since June amid positive news about the drop in inflation, and
the Federal Reserve’s projections proclaiming a pivot towards rate cuts. However,
he added that borrowers’ response to this rate move was rather tepid. “VA
refinance applications jumped 18% for the week, but otherwise, both refinance
and purchase applications showed small declines,” Fratantoni said.