Report: Refinancing, Purchase Activity Levels in Housing Market

Posted January 9, 2024

The housing market could be turning a corner according to Moody’s Analytics which shows more homeowners are refinancing at a level not seen since the start of 2023.

Refinancing hit its highest level since the beginning of 2023 in the week ended December 10, according to a Moody’s Analytics report. The uptick in refinancing came following the 30-year fixed mortgage rate ticked down to 7.1 percent in the first half of December, nearly a point lower than what was available in October.

While these refinancing numbers are historically low, it is still a valuable option for those who purchased a home earlier with a higher mortgage rate compared to the adjustable rate as it removes the possibility of rising costs later on.

The Moody’s report also found an increase in purchasing activity. The four-week moving average of the purchase activity index from the Mortgage Bankers Association was 12.2 percent higher in the first half of December than a month earlier.

People interested in buying a home are not the only ones noticing a change in the market. Homebuilders are beginning to retract their previous thoughts regarding their confidence in the market.

Following four consecutive months of declines, homebuilder confidence increased 3 points to 37 in December, according to the National Association of Home Builders’ Housing Market Index.