Mortgage volumes increase, reducing demand as fewer Americans refinance
Date
12/22/2024 2:55:48 AM
(MENAFN) This week, mortgage rates rose, causing a decline in demand as many Americans hesitated to refinance.
According to Freddie Mac's latest Primary Mortgage Market Survey, released on Thursday, the average rate for a standard 30-year fixed mortgage increased to 6.72 percent, up from 6.6 percent the previous week. A year ago, the rate stood at 6.67 percent.
"This week, mortgage rates edged up to a level similar to this time last year," stated Sam Khater, the chief economist at Freddie Mac. "Over the past 12 months, mortgage rates have generally fluctuated between 6 and 7 percent. Homebuyers are gradually adjusting to these higher rates and becoming more open to proceeding with home purchases, leading to an uptick in purchasing activity."
The average rate for a 15-year fixed mortgage rose to 5.92 percent, up from 5.84 percent last week. A year ago, the rate was slightly higher at 5.95 percent.
On Wednesday, the Mortgage Bankers Association (MBA) reported a 0.7 percent decrease in overall mortgage applications on a seasonally adjusted basis compared to the previous week. This drop was attributed to the rate hike, which resulted in a 3 percent decline in refinancing applications.
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