Mortgage applications

While there were fewer new mortgages sought on a week-to-week basis, the index was higher than it has been during the same week in the last two years.

Despite a 3% increase in new mortgages, overall applications dropped 2% on a consecutive-week basis due to a 5% decline in refis, according to the Mortgage Bankers Association.

While the economic recovery and stimulus checks drove upward movement in purchases, it wasn’t enough to offset tumbling refinance activity.

“Builders continue to be confronted with rising input costs and a lack of available lots, causing them to slow production,” MBA’s Joel Kan said.

Severe winter weather and another hike in mortgage rates stifled loan volume for the week, according to the Mortgage Bankers Association.

But the average amount for a purchase loan increased to an all-time high, showing the upper end of the housing market remains strong.

After mortgage rates rose for three weeks, borrowers took advantage of a 3-basis-point dip and sparked a short-term refinancing rally, according to the Mortgage Bankers Association.

While financing costs are still low enough to offset sticker-shock from rising home prices, a slight increase in the average 30-year conforming rate weighed on borrowers, according to the Mortgage Bankers Association.

Mortgage applications decreased 1.9% from one week earlier as rising rates started to affect refinance activity, according to the Mortgage Bankers Association.

Purchase apps for new homes only eked out a small gain in December but the Mortgage Bankers Association is forecasting that they will continue to increase.