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A significant increase in mortgage applications
In the United States, mortgage applications registered a significant increase, interrupting a series of four consecutive declines. This change occurs against a background of high interest rates, which have reached their highest levels since last May. According to data provided by the Mortgage Bankers Association, in the week ending January 10, total mortgage applications increased by 33.3% compared to the previous week, marking an increase of 7% compared to the same period of the
previous year.
Interest rate and refinancing details
In particular, the average interest rate on a 30-year fixed mortgage rose from 6.99% to 7.09%. Refinancing applications, which are particularly sensitive to weekly changes in rates, saw an increase of 43.5%, an increase of 22% compared to a year earlier. This increase in refinance requests suggests that many homeowners are looking to take advantage of more favorable terms, despite rising rates
.
Mortgage applications for the purchase of homes
Mortgage requests for the purchase of a home grew by 26.9% compared to the previous week, but are down 2% compared to twelve months ago. This indicates some caution among buyers, who may be affected by economic uncertainty and rising interest rates. In December 2024, inflation in the United States met analysts’ expectations, with consumer prices increasing by 0.4% on a monthly basis. The Bureau of Labor Statistics reported a significant increase in the energy and food sectors, contributing to annual inflation rising to 2.9%
.
Implications for the real estate market
These data highlight persistent difficulties in the real estate sector, where rising interest rates could further curb demand. The Mortgage Bankers Association also indicated an increase in rates on 30-year mortgages to 7.09%, which could make it harder for potential buyers to enter the market. In addition, the European Commission has given the green light to the acquisition of UniCredit CNP Vita by UniCredit, a move that does not raise competition concerns, but that could affect the financial sector
as a whole.
Future Perspectives
With Eurozone industrial output showing an increase of 0.2% in November, in line with October, but lower than market expectations, the outlook for the real estate sector remains uncertain. Analysts will continue to monitor the trend in mortgage applications and interest rates, as these factors will be crucial in determining the future direction of the housing market in the United States
.
