Mortgage interest rates went up again at the end of the year after a brief respite in the first half.
At the end of last week, mortgage application volume was down 13.2% from the previous week. The MBA was not open last week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming balances increased to 6.58% from 6.34%. The rate was 3% at the end of the year.
The demand for refinancing fell from two weeks earlier and was down from the same period in the previous year.
The mortgage rates are lower than they were in October, but would have to decline substantially to generate more activity.
The number of mortgage applications to purchase a home was down 42% from a year ago. They ended the year at a low level.
Home prices weakened in November.
Home sales have slowed in both the new and existing segments of the market, impacting purchase applications. Even as home-price growth slows in many parts of the country, elevated mortgage rates continue to put a strain on affordability and are keeping potential buyers out of the market.
The all important monthly employment report is expected to be released Friday and all eyes are on it. It is not clear which way rates will move on the data.
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