The holiday season is usually a slower time for the housing market in terms of sales, however, this year the market is seeing a surge in mortgage applications. Application have grown by 5% over the past week, although still 4% lower than the same week last year.
“Both conventional and government loan applications increased, and the average loan size for a purchase loan was at $407,200, continuing its ongoing 2021 run of being mostly above $400,000,” MBA economist Joel Kan reported. One concern some buyers might have is mortgage rates increasing after the holidays. Some buyers might not be able to afford a home if rates move higher due to how expensive home costs are currently.
Mortgage refinance applications also increased slightly by 0.4%. Buyers are looking to lock in mortgage rates in anticipation of higher rates that might be coming.