After dropping 21.9% during the final two full weeks of 2024, mortgage application volume continued to sink 3.7% during the week ended January 3, as the average rate for a 30-year, fixed-rate mortgage continued to climb to 6.99%, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 2% compared with the previous week but were down 6% compared with the same week one year ago.
Applications for purchases decreased 7% compared with the previous week and were down 15% compared with 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,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The 30-year fixed rate increased for the fourth consecutive week, reaching 6.99 percent – the highest rate since July 2024.”
“Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024,” Kan adds. “Refinance applications increased despite higher rates, but the increase was compared to recent low levels and was driven entirely 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, up from 39.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 4.7% of total applications.
Photo: Ben Mullins
