The
Market
Composite
Index,
a
measure
of
mortgage
loan
application
volume,
decreased
2.0%
on
a
seasonally
adjusted
basis
from
one
week
earlier,
according
to
data
from
the

Mortgage
Bankers
Association’s
(MBA)
latest
weekly
mortgage
applications
survey.
This
week’s
results
for
the
week
ending
Jan.
24,
2025,
include
an
adjustment
for
the
Martin
Luther
King
holiday.

On
an
unadjusted
basis,
the
index
decreased
9%

compared
with
the
previous
week.
The
refinance
index
decreased
7%
week-over-week
but
was
5%
higher
than
the
same
week
one
year
ago.

The
seasonally
adjusted
purchase
index
decreased
0.4%
from
the
week
prior
while
the
unadjusted
purchase
Index
decreased
4%
and
was
7%
lower
than
the
same
week
one
year
ago.

“Mortgage
rates
were
mixed
last
week,
and
the
30-year
fixed
rate
remained
unchanged
at
7.02%.
Application
activity
was
slightly
weaker,
primarily
because
of
a
7%
decline
in
refinancing
across
both
conventional
and
government
loans,”
said
Joel
Kan,

MBA’s
vice
president
and
deputy
chief
economist.
“Purchase
activity
decreased
slightly,
but
applications
for
FHA
purchase
loans
were
a
bright
spot,
increasing
by
2%.
New
and
existing
home
sales
ended
2024
on
a
strong
note,
and
if
mortgage
rates
continue
to
stabilize
and
for-sale
inventory
loosens,
we
expect
a
gradual
pick
up
in
purchase
activity
in
the
coming
months.”

The
refinance
share
of
mortgage
activity
decreased
to
37.1%
of
total
applications
from
40.4%
the
previous
week.
The
adjustable-rate
mortgage
(ARM)
share
of
activity
increased
to
5.8%
of
total
applications.

The

FHA
share
of
total
applications
increased
to
16.7%
from
16.5%
the
week
prior.
The

VA
share
of
total
applications
decreased
to
13.2%
from
14.6%
the
week
prior.
The

USDA
share
of
total
applications
increased
to
0.5%
from
0.4%.

The
average
contract
interest
rate
for
30-year
fixed-rate
mortgages
with
conforming
loan
balances
remained
unchanged
from
last
week’s
7.02%.
For
30-year
fixed-rate
mortgages
with
jumbo
loan
balances,
the
interest
rate
increased
to
7.02%
from
6.98%

FHA-backed
30-year
mortgages’
interest
rate
decreased
to
6.72%
from
6.74%
while
the
average
contract
interest
rate
for
15-year
fixed-rate
mortgages
decreased
to
6.37%
from
6.45%.

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