In late December 2024, a significant rise in mortgage interest rates impacted mortgage demand, with total application volume dropping 21.9% compared to the previous week. The average interest rate for 30-year fixed-rate mortgages increased to 6.97%, higher than the previous year. Refinance applications fell by 36% but were still 10% above last year, reducing their share of total applications to 39.4%. Purchase mortgage applications declined by 13%, reflecting a broader trend of sluggish housing activity during the year’s slowest sales period. High prices and interest rates continue to challenge the housing market, leaving many homes unsold.
