MBA Weekly Survey
Mortgage applications decreased 21.9 percent from two
weeks earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending December 27, 2024. The results include an adjustment to
account for the Christmas holiday.The Market Composite Index, a measure of mortgage loan application volume, decreased 21.9 percent
on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 55
percent compared with two weeks ago. The holiday adjusted Refinance Index decreased 36 percent from
two weeks ago and was 10 percent higher than the same week one year ago. The unadjusted Refinance
Index decreased 62 percent from two weeks ago and was 6 percent lower than the same week one year
ago. The seasonally adjusted Purchase Index decreased 13 percent compared with two weeks ago. The
unadjusted Purchase Index decreased 48 percent compared with two weeks ago and was 17 percent
lower than the same week one year ago.“Mortgage rates moved higher through the last full week of 2024, reaching almost 7 percent for 30-year
fixed-rate loans,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “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.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 6.97 percent from 6.89 percent, with points increasing to 0.72 from 0.67
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased
from last week.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 17% year-over-year unadjusted.
