"Mortgage Applications Dip Despite Interest Rate Decline and Mixed Housing Market Signals"
Despite a decrease in mortgage rates, the Mortgage Bankers Association reported a 9.4% drop in home-purchase applications for the week ending December 29. The average rate on a 30-year loan ended the year at 6.76%, down from an October peak but still high compared to pre-pandemic levels. The housing market remains sluggish due to high rates and a significant 45.1% drop in available home supply since early 2020. Refinance applications also decreased, though they are 15% higher than the previous year. The Federal Reserve's rate hikes have cooled the housing market, but recent declines in mortgage rates offer some optimism for 2024.