Mortgage rates

Strong economic data was countered by international political developments, sending the 30-year rate lower for the first time in a month.

Inflation data showing a 7.5% increase in consumer prices will likely lead to Federal Reserve moves that apply continued upward pressure.

The latest jobs and economic numbers pave the way for additional upward movement throughout 2022, analysts said.

December's activity was down 18% from November, led by a 23% drop in purchase volume and a 17% decline in rate-and-term refinancings, Black Knight said.

Despite the rising number of COVID infections, investors made no moves that would apply downward pressure.

The central bank’s new tone has many in the industry planning for potential volatility in 2022.

However, economic data points to likely future increases, with investors awaiting numbers from upcoming jobs report.

Taper announcement, slowing COVID cases help remove downward pressure, leading to increases across all loan-term types.

The home price increases and the ongoing inventory shortage made buying conditions difficult and many think it’s only getting more challenging, according to RealtyTrac.

Foreign investment helped offset a slowing domestic recovery, causing few ripples for the week, but economists expect future taper of bond purchases to lead to upward movement.

COVID-19 concerns, inflation hold back actions that might change current patterns.

Effects of major economic announcements this summer have had little impact on the lending market, with averages remaining under 3% since July.

The 30-year average has remained below 3% for two months.

Increasing COVID-19 numbers offset promising economic figures, resulting in minimal changes.

Meanwhile, investors await word from the central bank regarding monetary policy, as limited housing supply continues to drive prices upward.

But average loan sizes remain near record highs, with summer purchases of new constructions continuing to drive up prices.

An equal split of refinance and purchase rate locks occurred during July, helped by elimination of the adverse market fee, Black Knight said.

Tight inventory and heightened competition kept prime purchasers at bay as property values continued their summer surge, according to Fannie Mae.

Such applications have declined on an annual basis for the past three months, but overall weekly numbers increased due to a jump in refinances amid plummeting rates.

Despite lower numbers, refi applications continued trending strongly, while purchases fell close to lows from more than a year ago.