Mortgage applications increased 2.2% on a seasonally adjusted basis from last week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending January 31, 2025.
On an unadjusted basis, the index measuring applications increased 19% compared with the previous week. The refinance index increased 12% from the previous week and was 17% higher compared to the same week one year ago.
The seasonally adjusted purchase index decreased by 4% from one week earlier while the unadjusted purchase index increased 15% compared with the previous week. Year over year, the unadjusted purchase index was 0.2% higher.
“Mortgage rates moved lower last week, consistent with lower Treasury yields following the FOMC meeting and a volatile week for [the] stock market. The 30-year fixed rate declined to its lowest level in six weeks at 6.97%,” said Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage applications responded to these lower rates and were up for the week overall, driven by a 12% increase in refinance applications, which had their strongest week since December 2024.”
Kan added that purchase activity had a rougher week. “The average loan size for a purchase loan has increased since the start of the year and continued that trend last week with weaker government purchase activity, which reached $447,300, the highest level since October 2024,” he said.
The refinance share of mortgage activity increased to 39.0% of total applications compared to 37.1% the previous week. Adjustable-rate mortgage (ARM) activity remained unchanged at 5.8% of total applications.
FHA applications saw a decrease to 16.2% from last week’s 16.7%. The VA share of total applications increased marginally to 13.3% from 13.2% the week prior. Like ARM activity, the USDA share of total applications remained unchanged at 0.5% from the week prior.
Average contract interest rates for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.97% from 7.02% and jumbo loans for 30-year fixed-rate mortgages also saw a small decrease to 7.01% from 7.02%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.69% from 6.72% and the average rate for 15-year fixed-rate mortgages decreased to 6.36% from 6.37%.
