Originations

The potential impacts of import tariffs cloud the outlook, though, and could lead mortgage rates to surge and fall throughout the coming year.

Meanwhile, home prices are set to grow 3 to 4% in 2025, a Fitch report predicts.

The consortium of businesses intends to work with state regulators to protect consumers as interest from secondary market investors also grows.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.

The 30-year fixed rate mortgage continues to slip away from the 7% mark, Freddie Mac said, but experts still expect them to stay higher for longer.

On an annual basis, home prices grew by 4.2% in November, FHFA's index found.

Paying off debt and making home repairs are the top reasons homeowners choose a cash-out refinance, per the bureau's report.

Higher mortgage rates will persist through 2026, affecting sales and refinancings. Those expectations led Fannie Mae to cut its volume outlook for the next two years.

Commoditization of mortgages, plus technology that eases the refinance process, and the regulatory environment, all contributed to the decision.

Even though senior home values are still near the all-time high, other data shows fewer are turning to reverse mortgages to ease a potential financial crunch.