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Holidays take mortgage applications on roller coaster ride

January 10, 2011 - Fluctuating mortgage rates caused overall mortgage activity to vacillate over the holiday season, even as applications from buyers moving into new homes remained steady.

The Mortgage Bankers Association reported that during the week ending December 24, mortgage rates climbed, causing buyers to shy away from refinancing and pushing total mortgage volume down 3.9 percent. The following week - ending December 31 - rates eased downward again, creating increased interest in refinancing and forcing mortgage activity upward by 2.3 percent.

All the way, interest in purchase applications from those relocating to a new home remained relatively steady. Purchase activity climbed during the week leading up to Christmas, said the report, and dropped only 0.8 percent during the week leading up to New Year's Day.

The report added that mortgage rates finished the year averaging 4.81 percent for 30-year fixed-rate loans. Meanwhile, 15-year fixed-rate mortgages ended 2010 at an average 4.23 percent.

Though mortgage rates are expected to climb this year, experts say buying a home and moving will continue to be affordable throughout 2011. At the same time, analysts with the National Association of Realtors say prices could climb by the end of the year, meaning consumers ought to get moving sooner rather than later.
 

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