Mortgage Applications Decrease in the Week Ending January 3

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, January 3, the Market Composite Index—a measure of mortgage loan application volume—declined 3.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 47.0% compared with the previous week.

The Refinance Index increased 2.0% from the previous week but was 6.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 7.0% from one week earlier. The unadjusted Purchase Index increased 43.0% compared with the previous week but was 15.0% lower than the same week one year ago.

Commenting on the results of this week’s survey, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Applications decreased last week as rising mortgage rates continued to discourage buyers from entering the market and put a damper on purchase activity. The 30-year fixed rate increased for the fourth consecutive week, reaching 6.99%—the highest rate since July 2024. Purchase applications declined for both conventional and government loans and dropped to the slowest weekly pace since February 2024. Refinance applications increased despite higher rates, but the increase was compared to recent low levels and was driven entirely by an increase in VA refinances, which continue to show weekly swings.”