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Mortgage Rates Steady at 6.21% as Applications Slide and Refinancing Share Climbs

Bond‑market expectations, not Fed policy moves, are setting the tone for housing finance.

Overview

  • Mortgage applications fell 3.8% in the week ending Dec. 12, with purchase loans down 3% seasonally adjusted and refinance applications down 4% from the prior week, MBA reported.
  • The refinance share rose to 59% of activity, the highest since September, as seasonal year‑end patterns pulled purchase demand lower.
  • Freddie Mac put the average 30‑year fixed rate at 6.21% and the 15‑year at 5.47% this week, little changed as the 10‑year Treasury yield held near recent levels.
  • Rates edged up after the Fed’s Dec. 10 cut as investors repriced the outlook, contributing to softer loan demand despite policy easing.
  • MBA’s Builder Application Survey showed November new‑home purchase applications up 3.1% year over year but down 7% from October, with an estimated 755,000 SAAR and a lower average loan size of $378,063.