After six weeks of steady increases, mortgage application volumes recorded a decline for the first time since late October, even as interest rates continue to drop.
According to the Mortgage Bankers Association’s Market Composite Index, there was a 1.5% decrease in application volume for the period ending Dec. 15. However, the 30-year fixed rate for loans with conforming balances fell below 7%, making it the lowest average mark since June.
Despite the decline in applications, recent surges and favorable trends in the market are indicating a positive outlook for home lending. Refinances and purchase loans saw an increase in average size, and the recent upswing in home lending is reflected in greater inventory and pending sales.
While overall application volumes fell, VA refinance applications jumped by 18%, indicating a growing demand for federally backed mortgages. Additionally, the jumbo average and the average 15-year fixed contract rate saw significant decreases.
Despite the recent downturn, the mortgage market continues to show promise as favorable trends and lower rates contribute to a positive outlook for the industry.
If you are looking to take advantage of this trend, now might be the right time to consider your mortgage options. Whether you’re a first-time homebuyer or looking to refinance, the current market conditions provide a favorable environment for potential borrowers. Reach out to a mortgage lender to explore your options today.
