A significant drop in mortgage applications
Mortgage loan applications in the United States declined significantly, recording a decrease of 0.7% in the week ending December 13. This figure is particularly relevant considering that the previous week had seen a significant increase of 5.4%. The volatility in mortgage applications is a sign of uncertainty in the market, which could influence investment and buying decisions of
American families.
Refinancing and new mortgage applications
According to data provided by the Mortgage Bankers Association (MBA), refinancing requests registered a decrease of 2.6%. This could indicate that many homeowners are no longer looking to take advantage of lower interest rates, perhaps due to rising rates on 30-year mortgages. However, new mortgage applications showed an increase of 1.4%, suggesting that there is still some interest in the market for new loans, despite the difficulties
.
Rising interest rates
Another significant factor that has influenced the market is the increase in rates on thirty-year mortgages, which rose to 6.75% from 6.67% the previous week. This increase could have a direct impact on the ability of families to access finance, making mortgages less affordable for many. Experts warn that if rates continue to rise, we could see a further slowdown in mortgage applications, with potentially negative consequences for the
housing market.
Economic environment and inflation
In a wider context, annual inflation in the European Union increased to 2.5% in November, compared to 2.3% in October, according to Eurostat data. This increase in inflation could affect monetary policies and interest rates globally. The lowest levels of inflation were recorded in Ireland, while Romania saw the highest rates. The biggest contributor to inflation came from services, a sector that continues to show signs of growth despite economic challenges.