U.S. Mortgage Applications Downtick in late January

According to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey for the week ending January 24, 2025, mortgage applications declined by 2.0% compared to the previous week.

The Market Composite Index, which tracks overall mortgage loan application volume, fell 2.0% on a seasonally adjusted basis and 9% unadjusted.

The Refinance Index dropped 7% but remained 5% higher than the same period last year. Meanwhile, the seasonally adjusted Purchase Index dipped 0.4%, with an unadjusted 4% decrease, marking a 7% decline compared to the same week in 2024.

Joel Kan

“Mortgage rates were mixed last week, with the 30-year fixed rate holding steady at 7.02%,” noted Joel Kan, MBA’s Vice President and Deputy Chief Economist. “While refinancing activity saw a 7% decline across conventional and government loans, purchase applications for FHA loans rose by 2%. We anticipate a gradual recovery in purchase activity if mortgage rates stabilize and inventory expands.”

Key survey findings include:

• Refinance share: Down to 37.1% of total applications from 40.4% the prior week.
• Adjustable-rate mortgage (ARM) share: Increased to 5.8%.
• FHA share: Rose to 16.7% from 16.5%.
• VA share: Dropped to 13.2% from 14.6%.
• USDA share: Increased slightly to 0.5% from 0.4%.

Interest Rate Highlights

• 30-year fixed (conforming): Unchanged at 7.02%, with points rising to 0.63 from 0.62.
• 30-year fixed (jumbo): Increased to 7.02% from 6.98%, with points rising to 0.57 from 0.50.
• FHA-backed 30-year fixed: Decreased to 6.72% from 6.74%, with points rising to 0.94 from 0.90.
• 15-year fixed: Fell to 6.37% from 6.45%, with points increasing to 0.74 from 0.64.
• 5/1 ARMs: Rose to 6.44% from 6.41%, with points rising to 0.62 from 0.59.