Mortgage Applications Decrease Over a Two-Week Period in Latest MBA Weekly Survey
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Mortgage applications decreased 21.9% from two weeks earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 27, 2024. The results include an adjustment to account for the Christmas holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 21.9% on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 55% compared with two weeks ago. The holiday adjusted Refinance Index decreased 36% from two weeks ago and was 10% higher than the same week one year ago. The unadjusted Refinance Index decreased 62% from two weeks ago and was 6% lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 13% compared with two weeks ago. The unadjusted Purchase Index decreased 48% compared with two weeks ago and was 17% lower than the same week one year ago.
“Mortgage rates moved higher through the last full week of 2024, reaching almost 7 percent for 30-year fixed-rate loans,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Not surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in both refinance and purchase applications.”
The refinance share of mortgage activity decreased to 39.4% of total applications from 44.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.2% of total applications.
The FHA share of total applications decreased to 16.6% from 17.2% the week prior. The VA share of total applications increased to 15.7% from 15.2% 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) increased to 6.97% from 6.89%, with points increasing to 0.72 from 0.67 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 7.13% from 6.99%, with points increasing to 0.64 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.69% from 6.68%, with points increasing to 1.05 from 0.77 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 6.43% from 6.37%, with points increasing to 0.75 from 0.72 (including the origination fee) for 80% LTV loans. The effective rate increased from last week. The average contract interest rate for 5/1 ARMs decreased to 5.97% from 6.11%, with points increasing to 0.65 from 0.58 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
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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.
