The latest data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey Mortgage shows applications increasing 33.3% from one week earlier; however MBA added context around the notable jump pointing to this time of year being particularly unpredictable for purchase activity. Last week’s results included an adjustment for the New Year’s holiday.
“Bond yields in the U.S. and abroad continued to move higher in response to concerns over a sticky inflation outlook and still too-high budget deficits, which pushed mortgage rates higher for the fifth consecutive week,” said Joel Kan, MBA’s vice president and deputy chief economist. “This time of the year is a particularly volatile time for application volumes, so it can be more helpful to focus on the level rather than the percent change.”
Purchase applications were 2% lower, and refinances were 22% higher compared to a year ago, he stated, adding, “Total applications were up by 33.3%, the highest level in a month, as both purchase and refinance applications saw large percentage increases over the week.
“The 30-year fixed rate is now at 7.09%–its highest level since May 2024,“ Kan also noted.
This week’s data: The Market Composite Index, a measure of mortgage loan application volume, increased 33.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 52% compared with the previous week. The Refinance Index increased 44% from the previous week and was 22% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 27% from one week earlier. The unadjusted Purchase Index increased 48% compared with the previous week and was 2% lower than the same week one year ago.
Also: The refinance share of mortgage activity increased to 42.7% of total applications from 40.8% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.0% of total applications.
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