Mortgage Applications Decrease in Latest MBA Weekly Survey

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Mortgage applications decreased 3.7% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 3, 2025.  This week’s results include an adjustment for the New Year’s holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 47% compared with the previous week. The Refinance Index increased 2% from the previous week and was 6% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 7% from one week earlier. The unadjusted Purchase Index increased 43% compared with the previous week and was 15% lower than the same week one year ago.

“Applications decreased last week as rising mortgage rates continued to discourage buyers from entering the market and put a damper on purchase activity. The 30-year fixed rate increased for the fourth consecutive week, reaching 6.99%–the highest rate since July 2024,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024. Refinance applications increased despite higher rates, but the increase was compared to recent low levels and was entirely driven by an increase in VA refinances, which continue to show weekly swings.”

The refinance share of mortgage activity increased to 40.8% of total applications from 39.4% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.7% of total applications.

The FHA share of total applications increased to 16.9% from 16.6% the week prior. The VA share of total applications increased to 16.2% from 15.7% the week prior. The USDA share of total applications increased to 0.6% from 0.4% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.99% from 6.97%, with points decreasing to 0.68 from 0.72 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.  The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 6.99% from 7.13%, with points increasing to 0.74 from 0.64 (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 6.65% from 6.69%, with points decreasing to 0.91 from 1.05 (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 6.46% from 6.43%, with points decreasing to 0.62 from 0.75 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.98% from 5.97%, with points decreasing to 0.26 from 0.65 (including the origination fee) for 80% LTV loans. The effective rate decreased 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.