Mortgage Application Volume Hits the Same Levels as 1995—Is It Time to Break Out the Floppy Disks?
Mortgage applications in January 2025 just hit the same volume as they did in 1995—cue the dial-up internet sound! 📟📞 While interest rates hover above 7%, homebuyers are still making moves, with purchase applications rising 3.8%. Refinances, on the other hand, took a slight dip. Loan sizes are shifting, and adjustable-rate mortgages continue their downward trend.
MORTGAGE NEWS
Let’s take a trip down memory lane—1995. The year Windows 95 launched, people were jamming to Coolio’s "Gangsta’s Paradise," and dial-up internet was the peak of technology. Fast forward to 2025, and guess what? Mortgage application volume is back at 1995 levels. While the fashion might have improved (debatable), the mortgage world seems to be taking a nostalgic trip.
The Numbers You Need to Know
Mortgage applications increased by 3.1% in January (seasonally adjusted). It’s not a blockbuster surge, but hey, growth is growth!
Purchase applications? Up 3.8%! More people are getting serious about homeownership despite the rates.
Refinances? Down 2.3%. Looks like most folks are staying put with their current mortgage deals.
Year-over-year, mortgage applications are up 3.4%, but purchase applications are actually down 3.4% compared to last year.
Interest Rates: Still a Hot Topic
If you were hoping for a sudden drop in rates, not so fast! The average 30-year fixed mortgage rate ticked up to 7.02%, up 20 basis points from December and 24 basis points higher than January 2024. Not exactly the break buyers were looking for, but hey, we’re still better off than the early ‘80s when rates were pushing 18% (yikes).
What’s the Big Picture?
The mortgage market is staying resilient despite interest rates that aren’t exactly low. Buyers are still getting into the game, even if the numbers aren’t booming. Meanwhile, refinancers are holding off, waiting for rates to cool.
So, what does this mean for you? Well, if you’re thinking about buying a home, don’t let rates scare you. Real estate is a long-term play, and today’s rates might look like a steal compared to whatever comes next.
And if you’re feeling nostalgic about 1995, at least this time around, you don’t have to wait five minutes for the internet to connect just to check mortgage rates.
#myguycharlie