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Mortgage Rates Tick Higher for Third Week as Applications Slide 5.2%

Uncertain economic data ahead of the December Fed meeting is keeping mortgage pricing sensitive.

Overview

  • Freddie Mac reported the 30-year fixed at 6.26% and the 15-year at 5.54%, while the MBA’s application-weighted 30-year rate was about 6.37%.
  • Total applications fell 5.2% week over week, with refinance activity down 7% but 125% higher than a year ago and purchase applications down 2% but 26% above last year.
  • MBA’s Joel Kan said some buyers moved to the sidelines as borrowers reacted to small rate increases; the average loan size hit its lowest since August as ARM share declined.
  • FHA and VA loan shares rose as product mix shifted, while Freddie Mac noted rates have held within a narrow ten-basis-point range near one-year lows despite affordability strains.
  • Trade groups and analysts expect rates to stay in a tight range around the mid‑6% level, with moves hinging on delayed jobs and inflation data before the December Fed decision.