Mortgage Applications Flat in Early 2025
Charlotte, NC, January 31, 2025-Mortgage results have decelerated but held in with higher rates so far, reports Truist.
“We have found that mortgage applications are holding relatively well given the surge in mortgage rates in November and December. Unsurprisingly, there has been a clear deceleration from the October year-over-year growth rates in the unadjusted results, but we have not seen a substantial fall off and mixed year-over-year January results thus far. Investors should note that the unadjusted weekly data points can be very nuanced with the timing of holidays, which can significantly skew year-over-year comparables. For example, the most recent release for the week ended January 24 has four business days versus the comparable week with five business days given the timing of Martin Luther King Jr. Day. In our view, another spike in mortgage rates could send activity down substantially, but at the current levels, we think recent changes in activity have been relatively modest.”