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Mortgage demand drops nearly 10% to end 2025, despite lower interest rates (www.cnbc.com)

submitted 2 weeks ago by MicroWave@lemmy.world to c/economics@lemmy.world

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Mortgage rates moved lower to end 2025 and start 2026, but that did little to pull demand back to the market.

For the week ended Jan. 2, 2026, total mortgage application volume fell 9.7% on a seasonally adjusted basis from two weeks earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. There were additional adjustments made for the holidays, and the read is for two weeks because the MBA did not report last week.

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[–] TubularTittyFrog@lemmy.world 5 points 1 week ago* (last edited 1 week ago) (1 children)

I'm in the housing market.

Prices need to drop a solid 10-20% before any of this starts making sense again. Or rates need to drop back to 3-4%

The economy is also stagnating and most of the demand from the rich people that blew up prices the past few years has waned. they already have 3 homes.

[–] SaveTheTuaHawk@lemmy.ca 2 points 1 week ago (1 children)

It won't make sense until prices drop 50%.

[–] TubularTittyFrog@lemmy.world 2 points 1 week ago* (last edited 1 week ago)

they won't, because people like me will buy them at 20% drop and inflate them back up.

not to mention the people who are stuck in shitty starter homes hoping to upgrade by cashing in their equity gains from the pandemic years.

demand is way too high for housing to ever drop 50% short of a depression.