Mortgage lenders had a bumpy ride in the fourth quarter, Mortgage Bankers Association data show
Updated Jan. 11, 2017
Demand for mortgages fell substantially during the last three months of 2016 after rates spiked by more than half a percentage point in the wake of Donald Trump’s election. Total mortgage applications dropped 21% from the third quarter, led by demand for refinances which fell 31%, according to Mortgage Bankers Association data.
The numbers were up slightly when compared with the same period a year earlier, but not enough for mortgage lenders to close the year on an optimistic note.
Reduced mortgage demand in the wake of higher rates will likely be a recurring theme in fourth-quarter bank earnings, which kick off Friday. Analysts expect lower mortgage-banking earnings fueled by a mix of lower volume and a decline in profit margins.
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