Wed Jan 08 12:10:00 UTC 2025: ## Mortgage Rates Rise for Fourth Week, Plunging Demand to Lowest Point Since February

**NEW YORK –** Mortgage rates continued their upward climb for the fourth consecutive week, causing already weak demand to plummet to its lowest point since February 2024, according to the Mortgage Bankers Association (MBA). The average 30-year fixed-rate mortgage hit 6.99%, up from 6.97% the previous week, while applications fell by 3.7%. A separate survey by Mortgage News Daily placed the average even higher, at 7.14% on Tuesday.

This decline, adjusted for the New Year’s holiday, represents a significant drop in both purchase and refinance applications. Purchase applications fell 7% week-over-week and are down 15% year-over-year, reflecting the impact of higher rates and prices on buyer activity. While the supply of homes for sale has increased, potential buyers remain hesitant. Refinance applications, although showing a 2% weekly increase, remain 6% below last year’s levels. The MBA attributes this slight uptick to increased VA refinance activity.

Joel Kan, MBA’s vice president and deputy chief economist, highlighted the slowdown, stating that purchase applications reached their slowest weekly pace since February. The increase in refinance applications is attributed to unusually low recent levels and the impact of increased VA refinances.

The rise in rates is attributed to concerning economic data, particularly the ISM Services inflation component and high job openings. Matthew Graham, chief operating officer at Mortgage News Daily, noted a swift, though contained, spike in yields following the release of this data.

Further economic data, including the Federal Reserve’s meeting minutes (Wednesday) and the monthly employment report (Friday), will be crucial in determining whether this upward trend in mortgage rates will continue.

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