Financial News: US Mortgage Applications Continue To Decline

US Mortgage Applications Continue To Decline

01/02/2025 - 10:46:00 (RTTNews)

(RTTNews) - U.S. mortgage applications fell again during a two-week period ending December 27 as higher rates weighed on demand, survey data from the Mortgage Bankers Association showed on Thursday.

The market composite index, which measures mortgage loan application volume, decreased a seasonally adjusted 21.9 percent from two weeks earlier. The measure shrunk 55 percent on an unadjusted basis. The results include an adjustment to account for the Christmas holiday, the MBA said.

The holiday adjusted refinance index fell 36 percent from two weeks ago but was 10 percent higher than the same week a year ago. The unadjusted measure slumped 62 percent from two weeks ago and was 6 percent lower than the same week one year ago.

The seasonally adjusted purchase index declined 13 percent compared with two weeks ago and the corresponding unadjusted measure decreased 48 percent.

"Mortgage rates moved higher through the last full week of 2024, reaching almost 7 percent for 30-year fixed-rate loans," Mike Fratantoni, MBA's SVP and chief economist, said. "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 share of total applications under Federal Housing Administration declined to 16.6 percent from 17.2 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $766,550 or less rose to 6.97 percent from 6.89 percent.

The average interest rate for 30-year fixed-rate mortgages with jumbo loan balances, which are greater than $766,550, climbed to 7.13 percent from 6.99 percent.

The 30-year fixed-rate mortgages backed by the FHA had their average interest rate rise to 6.69 percent from 6.68 percent. The average interest rate for 15-year fixed-rate mortgages rose to 6.43 percent from 6.37 percent.

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