“Overall applications increased with both gains in purchase and refinance activity, but purchase applications remained almost 39% lower than a year ago. Despite a 15% increase in refinances, they were still 77% behind last year’s pace, as rates remained more than two percentage points higher, thus providing very little refinance incentive for most borrowers who are locked into lower rates.”
While homebuying activity remains tepid compared to last year, Kan expects to see potential buyers come back into the market if rates continue to fall and home prices cool further. “Many have been waiting for affordability challenges to subside,” he said.
According to the National Association of Realtors, the median existing-home price for all housing types in December was $366,900 – a 2.3% increase from $358,800 in December 2021.
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