According to the data, the volume of applications for refinancing mortgages decreased by 7% compared to the previous week and by 1% compared to the same period last year. Similarly, the number of applications for purchase mortgage loans also decreased by 5% this week, down by 12% compared to a year ago.

These changes in the housing mortgage market are mainly influenced by the continued impact of high mortgage rates. According to the Mortgage Bankers Association index, the total volume of mortgage applications decreased by 5.6% last week compared to the previous week, without considering the additional adjustments due to the Presidents Day holiday.

Specifically, the average contract interest rate for 30-year fixed-rate mortgages has decreased to 7.04%, with points rising from 0.66 to 0.67 (including origination fees), applicable to loans with a 20% down payment. Compared to a year ago, this rate has increased by approximately a quarter of a percentage point.

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The volume of applications for refinancing mortgages decreased by 7% compared to the previous week and by 1% compared to the same period last year. Mike Fratantoni, Chief Economist at the Mortgage Bankers Association, pointed out that the recent rise in rates has led to stagnation in market activity, especially resulting in further reduction in the number of people seeking refinancing through the Federal Housing Administration and the Department of Veterans Affairs.

It's worth noting that loans from the Federal Housing Administration and the Department of Veterans Affairs are typically used by low-income borrowers due to their lower down payment requirements. The volume of applications for purchase mortgage loans decreased by 5% this week and by 12% compared to the same week a year ago.

However, it is noteworthy that there was a 19% year-on-year increase in mortgage demand for buyers interested in newly constructed homes in January this year, which clearly highlights the main constraint of insufficient existing housing inventory on purchase volume growth. This indicates the shortcomings in the current market while also presenting some challenges to the market outlook.

Finally, according to another survey by Mortgage News Daily, mortgage rates rose again earlier this week, with 30-year fixed rates reaching their highest level since December 2023. Matthew Graham, Chief Operating Officer of Mortgage News Daily, stated that this rate hike has no apparent reason, but given the recent fluctuations in the past few weeks, it is not surprising. These trends will continue to impact the housing market, requiring close attention to further developments in the market.