As is to be expected, mortgage application volume took a steep dive over the holidays, falling 27% on an adjusted basis during the two weeks ended Jan. 1, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.
On an unadjusted basis, application volume decreased 50%. Applications for refinances decreased 37% while applications for purchases decreased 15%.
On an unadjusted basis, applications for purchases decreased 40% and were down 22% compared with the same week one year ago.
The refinance share of mortgage activity decreased to 55.4% of total applications from 56.1%.
Mortgage rates inched up slightly over the holidays. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) for the week ended Jan. 1 was 4.20%, up from 4.19% the previous week.
The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.09%, up from 4.07%.
The average rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration was 3.95%, down from 3.97%.
The average rate for a 15-year FRM was 3.47%, up from 3.42%.
The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.19%, up from 3.13%.
The ARM share of activity decreased to 4.7% of total applications.