Mortgage Applications Decreased Over a Two-Week Period in Latest MBA Weekly Survey
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Mortgage applications decreased 9.7% from two weeks earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Jan. 2, 2026. The results include an adjustment for the holidays.
The Market Composite Index, a measure of mortgage loan application volume, decreased 9.7% on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 28% compared with two weeks ago. The holiday adjusted Refinance Index decreased 14% from two weeks ago and was 133% higher than the same week one year ago. The unadjusted Refinance Index decreased 31% from two weeks ago and was 108% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 6% from two weeks earlier. The unadjusted Purchase Index decreased 23% compared with two weeks ago and was 10% higher than the same week one year ago.
“Mortgage rates started the New Year with a decline to 6.25%, the lowest level since September 2024. Refinance applications were up 7% for the week but were at a slower pace than in the weeks leading up to the holidays,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “FHA refinance applications saw a 19% increase, although that was a partial rebound from a drop the week before. MBA continues to expect mortgage rates to stay around current levels, with spells of refinance opportunities in the weeks when rates move lower.”
Added Kan, “Purchase applications were 10% higher than the same week a year ago but were down over the week following decreases in conventional and FHA applications. The average loan size was $408,700, the smallest in a year, driven by lower average loan sizes across both conventional and government loan types.”
The refinance share of mortgage activity increased to 56.6% of total applications from 53.8% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.
The FHA share of total applications increased to 20% from 18.4% the week prior. The VA share of total applications increased to 17.3% from 16.3% the week prior. The USDA share of total applications increased to 0.4% from 0.3% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.25% from 6.32%, with points decreasing to 0.57 from 0.59 (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 $806,500) decreased to 6.32% from 6.46%, with points increasing to 0.42 from 0.32 (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 6.09% from 6.15%, with points remaining unchanged at 0.77 (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 decreased to 5.64% from 5.69%, with points decreasing to 0.64 from 0.65 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.9% from 5.61%, with points decreasing to 0.19 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate increased 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.
