On January 2, 2026, a report released by CNBC journalist Diana Olick revealed that total mortgage applications have experienced a significant decline, falling by 21.9% in the last two weeks of December 2025. This report, published at 8:22 AM EST, underscores a sharp downturn in mortgage demand as the year came to a close.
The report highlights several factors contributing to this decline. Rising interest rates and economic uncertainty have played a pivotal role in dampening consumer confidence and willingness to commit to new mortgages. As potential homebuyers grapple with higher borrowing costs, many are choosing to delay their purchasing decisions.
Analyzing the data, Olick noted that the drop in applications reflects broader trends in the housing market. The contraction in mortgage demand comes at a time when many economists had anticipated a more robust end to the year, particularly as home prices showed signs of stabilization earlier in the fall. However, the recent shifts in monetary policy and inflationary pressures seem to have overshadowed these earlier developments.
This report marks an important moment in the ongoing narrative of the real estate sector, particularly as it unfolds during the winter months, traditionally a slower period for housing activity. The data serves as a timely reminder of the volatility inherent in the mortgage market, which can be influenced by a myriad of external factors.