Mortgage applications increased by 2.2% from the previous week, according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending January 31, 2025.
We adjusted the results to reflect the Martin Luther King Jr. holiday.
The Market Composite Index, which tracks mortgage loan application volume, showed a 2.2% increase on a seasonally adjusted basis. Without seasonal adjustments, the index jumped 19% compared to the prior week. Refinance applications surged by 12% week-over-week, marking a 17% increase compared to the same period last year.
Meanwhile, the seasonally adjusted Purchase Index dropped by 4%, but the unadjusted Purchase Index rose 15% from the prior week and was slightly higher—by 0.2%—than the same week in 2024.
“Mortgage rates declined last week, reflecting lower Treasury yields following the Federal Open Market Committee (FOMC) meeting and a turbulent week in the stock market,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “The 30-year fixed rate fell to 6.97%, the lowest level in six weeks.
This drop in rates spurred a 12% rise in refinance activity, making it the strongest week for refinances since December 2024.”
Kan noted that purchase activity had a weaker performance, with reductions across all loan types. He highlighted that the average loan size for purchase loans continued to rise, hitting $447,300—the highest level since October 2024—amid weaker government purchase activity.
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The share of refinance applications rose to 39.0% of total applications, up from 37.1% the previous week. Adjustable-rate mortgage (ARM) activity held steady at 5.8%.
In terms of loan programs:
- The FHA share of total applications dipped to 16.2% from 16.7%.
- The VA share increased slightly to 13.3% from 13.2%.
- The USDA share remained unchanged at 0.5%.
Interest Rates Overview
- The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) dropped to 6.97% from 7.02%, with points rising to 0.64 from 0.63 for 80% loan-to-value (LTV) loans.
- Jumbo 30-year fixed-rate mortgages (above $766,550) saw their rates decline to 7.01% from 7.02%, with points decreasing to 0.48 from 0.57.
- FHA-backed 30-year fixed-rate mortgages fell to 6.69% from 6.72%, with points decreasing to 0.84 from 0.94.
- The rate for 15-year fixed-rate mortgages edged down to 6.36% from 6.37%, with points dropping to 0.69 from 0.74.
- Rates for 5/1 adjustable-rate mortgages (ARMs) dropped significantly to 6.07% from 6.44%, with points slightly increasing to 0.64 from 0.62.
All effective rates for these mortgage products also decreased during the week.