Mortgage Applications Decline in the Week Ending December 15th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, December 15th, the Market Composite Index—a measure of mortgage loan application volume—declined 1.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3.0% compared with the previous week. The drop brings the streak of six consecutive weeks of growth to an end.

The Refinance Index decreased 2.0% from the previous week but was 18.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index declined 1.0% from one week earlier. The unadjusted Purchase Index decreased 4.0% compared with the previous week and was 18.0% lower than the same week one year ago.

Commenting on the results of the survey, MBA Senior Vice President and Chief Economist Mike Fratantoni said:

“With the positive news about the drop in inflation and the FOMC projections proclaiming a pivot towards rate cuts, the 30-year fixed mortgage rate reached its lowest level since June 2023, declining to 6.83%. At least as of last week, borrowers’ response to this rate move was rather tepid. VA refinance applications jumped 18% for the week, but otherwise, both refinance and purchase applications showed small declines.”