Due to higher mortgage rates and seasonal patterns, mortgage application volume decreased 21.9% on an adjusted basis during the two weeks ended December 27, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 36% during the two-week period, but we’re up 10% compared with the same period one year ago.
Applications for purchases decreased 13% during the two weeks, and were down 17% compared with the same period a year ago.
“Mortgage rates moved higher through the last full week of 2024, reaching almost 7 percent for 30-year fixed-rate loans,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “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.”
As of December 27, the refinance share of mortgage activity had decreased to 39.4% of total applications, down from 44.3% two weeks ago.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.2% of total applications.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balance was 6.97%, up from 6.89%.
Photo: Luismi Sánchez