Residential Real Estate News
U.S. Mortgage Applications Downtick in late January
According to the Mortgage Bankers Association's latest Weekly Mortgage Applications Survey for the week ending January 24, 2025, mortgage applications declined by 2.0% compared to the previous week.
The Market Composite Index, which tracks overall mortgage loan application volume, fell 2.0% on a seasonally adjusted basis and 9% unadjusted.
The Refinance Index dropped 7% but remained 5% higher than the same period last year. Meanwhile, the seasonally adjusted Purchase Index dipped 0.4%, with an unadjusted 4% decrease, marking a 7% decline compared to the same week in 2024.
"Mortgage rates were mixed last week, with the 30-year fixed rate holding steady at 7.02%," noted Joel Kan, MBA's Vice President and Deputy Chief Economist. "While refinancing activity saw a 7% decline across conventional and government loans, purchase applications for FHA loans rose by 2%. We anticipate a gradual recovery in purchase activity if mortgage rates stabilize and inventory expands."
Key survey findings include:
- Refinance share: Down to 37.1% of total applications from 40.4% the prior week.
- Adjustable-rate mortgage (ARM) share: Increased to 5.8%.
- FHA share: Rose to 16.7% from 16.5%.
- VA share: Dropped to 13.2% from 14.6%.
- USDA share: Increased slightly to 0.5% from 0.4%.
Interest Rate Highlights
- 30-year fixed (conforming): Unchanged at 7.02%, with points rising to 0.63 from 0.62.
- 30-year fixed (jumbo): Increased to 7.02% from 6.98%, with points rising to 0.57 from 0.50.
- FHA-backed 30-year fixed: Decreased to 6.72% from 6.74%, with points rising to 0.94 from 0.90.
- 15-year fixed: Fell to 6.37% from 6.45%, with points increasing to 0.74 from 0.64.
- 5/1 ARMs: Rose to 6.44% from 6.41%, with points rising to 0.62 from 0.59.
