Weekly Mortgage Applications Fell, But the Market Is Heating Up 

Unsurprisingly, the last two weeks of 2019 were the slowest of the year for mortgages. When December rolls around, dealing with an existing mortgage is one of the last things people want to do as they try to hold on to the holiday cheer. But the drop was mostly due to lower refinancing rates: The applications for new home mortgages actually increased. This is good news for those looking to sell homes—potential buyers are on the prowl, ready to pounce on the next good deal.

The last two weeks of the year are always the slowest in the mortgage business, and while refinance volume took a vacation, homebuyers were apparently busy.

Total mortgage application volume fell 1.5% for the last two weeks of the year, according to the Mortgage Bankers Association’s seasonally adjusted index. The MBA released two weeks of data because it was closed over the holidays.

Weaker refinance volume was behind the overall drop, as even falling mortgage rates didn’t spark much interest. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.91% from 3.99% two weeks earlier, for loans with a 20% down payment.

“Mortgage rates dropped last week, as investors sought safety in U.S. Treasury securities as a result of the events in the Middle East, with the 30-year fixed mortgage rate declining to its lowest level since early October,” said Mike Fratantoni, MBA’s chief economist.

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