Mortgage Applications Increase in the Week Ending January 12th

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending Friday, January 12th, the Market Composite Index—a measure of mortgage loan application volume—increased 10.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26.0% compared with the previous week.

The Refinance Index increased 11.0% from one week ago and was 10.0% higher than the same week one year ago.

The seasonally adjusted Purchase Index increased 9.0% compared with one week ago. The unadjusted Purchase Index increased 28.0% compared with the previous week but was 20.0% lower than the same week one year ago.

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

“Mortgage rates declined across all loan types as Treasury yields moved lower last week on incoming inflation data, which helped to support a rise in mortgage applications. The 30-year fixed mortgage rate decreased six basis points to 6.75%, the lowest rate in three weeks. Compared to a holiday-adjusted week, both purchase and refinance applications were up, and the increases were heavily driven by the conventional market. Although purchase activity is lagging year-ago levels, refinance applications have improved from their recent low point and have been showing year-over-year gains, albeit at low levels. If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months.”