The past two weeks have shown little movement in mortgage application activity, according to the latest data from the Mortgage Bankers Association (MBA). The mortgage application trends have hopes for a stronger rebound, applications have remained relatively stable as mortgage rates continue to hover around 7%.
The MBA’s Weekly Mortgage Applications Survey reported a 0.1% increase in overall mortgage application volume for the week ending January 17, 2025. On an unadjusted basis, applications rose 3% from the previous week. Purchase applications ticked up 1% on a seasonally adjusted basis, while the unadjusted Purchase Index increased 7% compared to the prior week and was 2% higher than the same time last year.
Meanwhile, refinancing activity declined slightly, with the Refinance Index dropping 3% week over week. However, it remains 42% higher than a year ago, as some homeowners take advantage of rate dips when they occur.
Mortgage rates continue to be a key factor in application activity. The average interest rate for 30-year fixed mortgages with conforming loan balances decreased slightly from 7.09% to 7.02%, with lender fees dipping as well. While this reduction is minor, it could help maintain buyer interest as the spring market approaches.
For homebuyers and homeowners considering a refinance, market conditions remain challenging but not without opportunity. Rates may still fluctuate in the coming weeks, and mortgage application trends will reflect any significant changes.
Looking ahead, real estate professionals and borrowers alike will be watching for signs of more substantial shifts in rates and affordability. If rates drop further, we could see renewed momentum in both purchase and refinance activity.
Stay tuned for more updates as the mortgage market continues to evolve.
Thanks for reading,
Chris
