“There was an increase in refinance activity as a result of the 16-basis-point decline in rates, as both conventional and government refinance applications increased. However, the overall pace of refinance applications was lower than November and December’s 2022 averages and over 80% lower than a year ago. Refinances were about 30% of all applications last week — well below the past decade’s average of 58%.”
“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market,” added Freddie Mac chief economist Sam Khater. “Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”
Want to make your inbox flourish with mortgage-focused news content? Get exclusive interviews, breaking news, and insights on industry events in your inbox – always be the first to know by subscribing to our FREE daily newsletter.