US Mortgage Applications Drop During The Two-Week Period Ending December 27

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, December 27, the Market Composite Index—a measure of mortgage loan application volume—declined 21.9% on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 55.0% compared with two weeks ago. MBA notes these results include an adjustment to account for the Christmas holiday.

The holiday-adjusted Refinance Index decreased 36.0% from two weeks ago but was 10.0% higher than the same week one year ago. The unadjusted Refinance Index decreased 62.0% from two weeks ago and was 6.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 13.0% compared with two weeks ago. The unadjusted Purchase Index decreased 48.0% compared with two weeks ago and was 17.0% lower than the same week one year ago.

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

“Mortgage rates moved higher through the last full week of 2024, reaching almost 7% for 30-year fixed-rate loans. Not surprisingly, this increase in rates—at a time when housing activity typically grinds to a halt—resulted in declines in both refinance and purchase applications.”