Mortgage Applications Increase in Latest MBA Weekly Survey

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Mortgage applications increased 0.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending January 17, 2025. 

The Market Composite Index, a measure of mortgage loan application volume, increased 0.1% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index increased 3% compared with the previous week. The Refinance Index decreased 3% from the previous week and was 42% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 7% compared with the previous week and was 2% higher than the same week one year ago.

“Mortgage application volume was little changed last week, but there was a small increase in conventional purchase volume, which brought the level of total purchase volume up almost 2% above last year at this time,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Mortgage rates remained near 7%, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases. Incoming economic data are likely to keep the Federal Reserve on hold for now, while uncertainties about economic policy are likely to keep longer-term rates, including mortgage rates, steady at these levels.”

The refinance share of mortgage activity decreased to 40.4% of total applications from 42.7% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.5% of total applications.

The FHA share of total applications decreased to 16.5% from 16.9% the week prior. The VA share of total applications decreased to 14.6% from 15.7% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.02% from 7.09%, with points decreasing to 0.62 from 0.65 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 6.98% from 7.05%, with points decreasing to 0.50 from 0.59 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.74% from 6.76%, with points unchanged at 0.90 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.45% from 6.43%, with points decreasing to 0.64 from 0.71 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 ARMs increased to 6.41% from 6.18%, with points increasing to 0.59 from 0.54 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.

The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels.  The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.