Mortgage application volume jumped 4.8% during the week ended December 5, despite a slight increase in rates, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
The results are adjusted for the Thanksgiving holiday.
Applications for refinances increased 14% compared with the previous week and were up 88% compared with the same week one year ago.
Applications for purchases decreased 2% compared with the previous week and were up 19% compared with the same week one year ago.
“Compared to the prior week’s data, which included an adjustment for the Thanksgiving holiday, mortgage application activity increased last week, driven by an uptick in refinance applications,” says Joel Kan, vice president and deputy chief economist for the MBA, inn a statement. “Conventional refinance applications were up almost 8 percent and government refinances were up 24 percent as the FHA rate dipped to its lowest level since September 2024.”
“Conventional purchase applications were down for the week, but there was a 5 percent increase in FHA purchase applications as prospective homebuyers continue to seek lower downpayment loans,” Kansas City adds. “Overall purchase applications continued to run ahead of 2024’s pace as broader housing inventory and affordability conditions improve gradually.”
The refinance share of mortgage activity increased to 58.2% of total applications, up from 53.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.0% of total applications.
Photo: Herve Margot