WASHINGTON–New home construction unexpectedly fell in December, but for all of 2015 housing starts climbed 10.8% to 1.11 million, the strongest year for construction since 2007.
Residential starts declined 2.5% last month to a 1.15 million annualized rate, from the prior month’s revised 1.18 million pace, according to the Commerce Department. But, the report showed a pickup last month in applications to build single-family homes, indicating construction will gradually advance in coming months.
Meanwhile, mortgage apps were up 9% on a seasonally adjusted basis for the week ending Jan. 15th compared to the previous week, according to the Mortgage Bankers Association.
Refinance applications were the primary reason, increasing 19% over the previous week, seasonally adjusted. Nevertheless, they are 40% below where they were a year ago, when rates were even lower. Applications to purchase a home fell 2% week-to-week, although the apps are 17% higher than the same week one year ago. The refinance share of mortgage activity increased to 59.1% of total applications from 55.8% the previous week, according to the MBA.