Mortgage application volume plummeted 5.0% during the week ended December 19, in keeping with seasonal patterns, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 6% compared with the previous week but were up 110% compared with the same week one year ago.
Applications for purchases decreased 4% compared with the previous week but were up 16% compared with the same week one year ago.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balance decreased to 6.31%, down from 6.38%.
“Overall mortgage application volume fell last week, despite the slight decline in mortgage rates,” says Mike Fratantoni, senior vice president and chief economist for the MBA, in a statement. “MBA expects the trends of a softening job market, sticky inflation, elevated home inventories, and steady mortgage rates will persist into the new year.”
“Purchase application volume last week was 16 percent higher than a year earlier,” Fratantoni adds. “We are forecasting continued, modest growth in terms of home sales in 2026.”
The refinance share of mortgage activity increased to 59.1%, up of total applications from 59.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 8.1% of total applications.
Photo: Marie Martin
