"Mortgage applications were essentially flat last week. Ongoing affordability pressures continue to shape borrower behavior, driving increased interest in FHA and adjustable-rate mortgage (ARM) products, Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA), said in a statement. ARM applications rose to a seven-week high, reflecting buyers' efforts to manage monthly payments amid the current interest rate and home price environment."
"On Thursday, the National Association of Realtors (NAR) reported that existing home sales in January were negatively impacted by severe winter weather that blanketed much of the country. The annualized sales rate of 3.91 million homes represented an 8.4% decline from December and a 4.4% decline from January 2025. While Winter Storm Fern was a contributing factor, there were other warning signs that closed sales would decline, according to Bright MLS chief economist Lisa Sturtevant."
"Closed sales generally represent contracts made in the 30 days prior. Pending sales were slow in December even as mortgage rates dropped, Sturtevant explained. Many buyers stayed on the sidelines, waiting not just for lower rates but also rate stability. Therefore, the January closed sales numbers are really reflecting conditions buyers encountered during December. But she also believes buyers will encounter more favorable conditions including more listings, slower home-price appreciation and stable mortgage rates as the spring homebuying season approaches."
Mortgage applications were flat as affordability pressures increased interest in FHA and adjustable-rate mortgage (ARM) products, with ARM applications at a seven-week high as buyers managed monthly payments. Existing home sales in January fell to 3.91 million annualized, down 8.4% from December and 4.4% from January 2025; Winter Storm Fern contributed. Closed sales reflect contracts from the prior 30 days, and pending sales were slow in December despite lower mortgage rates as many buyers waited for rate declines and stability. CPI annual inflation eased to 2.4% from 2.7%; shelter-driven inflation rose 0.2%. Regional market conditions will vary, with stronger sales expected in the Southeast and Southwest and tight supply in parts of the Midwest and Northeast.
Read at www.housingwire.com
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