The recent MBA mortgage applications survey indicates a notable decline in application volume, largely attributed to rising mortgage rates. The report highlights that even with adjustments made for seasonal fluctuations typically seen during the holiday period, the impact of increasing rates has been profound. This trend suggests that potential homebuyers may be deterred from entering the market or refinancing existing loans, as borrowing costs continue to climb.
Key elements from the survey include:
– **Rising Mortgage Rates**: Higher rates are discouraging new applications, signaling a tightening market.
– **Application Volume Drop**: A significant decrease in total applications indicates weakening demand.
– **Seasonal Adjustments**: The survey’s adjustments reveal that the decline is persistent despite traditional holiday fluctuations.
– **Market Sentiment**: Increased borrowing costs may signal caution among prospective buyers, impacting overall housing market activity.
You can read this full article at: https://www.housingwire.com/articles/mortgage-demand-drops-rates-move-higher-mba/(subscription required)
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