Mortgage demand jumps as rates drop
foxbusiness.comMaking Money Charles Payne discusses the return of animal spirits since Trump won the election.
Long-term mortgage rates fell over the past week, reigniting demand for home purchases and breathing new life into what has been a stagnant housing market.
The Mortgage Bankers Association (MBA) reported Wednesday that mortgage applications jumped 6.3% overall from the week before, driven by an increase in purchase demand, which was up 52% from a year ago.
A «for sale» sign displayed in front of a home on Feb. 22, 2023, in Miami, Florida. (Photo by Joe Raedle/Getty Images / Getty Images)
The surge in purchase applications comes as mortgage rates fell for the first time in two months, MBA noted. Still, the decline in rates was only slight, and the affordability crisis continues to drag heavily on the housing market.
FREDDIE MAC, FANNIE MAE BACKING BIGGER HOME LOANS IN 2025
Freddie Mac's latest Primary Mortgage Market Survey, also released Wednesday, showed that the average rate on the benchmark 30-year fixed mortgage dropped to 6.81% from last week's reading of 6.84%. The average rate on a 30-year loan was 7.22% a year ago.
«The 30-year fixed-rate mortgage moved down this week, but not by much,» said Sam Khater, Freddie Mac’s chief economist. «Rates have been relatively flat over the last few weeks as the market waits for more clarity on specific economic policies.»
«Potential homebuyers are also waiting on the sidelines, causing demand to be lackluster,» Khater added. «Despite the low sales activity, inventory has only modestly improved and remains dramatically undersupplied.»
Real estate adviser and former 'Million Dollar Listing New York' star Kirsten Jordan looks ahead to the Fed's next rate decision and the state of the
Read more on foxbusiness.com
