Mortgage applications barely increased this week amid lingering high mortgage rates, but the increase was enough to push home purchase applications up 2% over last year.
That’s the latest analysis from the Mortgage Bankers Association, who reported a 0.1% increase in applications over last week’s notable 33% jump, per its latest Weekly Mortgage Applications Survey for the week ending January 17, 2025.
“Mortgage application volume was little changed last week, but there was a small increase in conventional purchase volume, which brought the level of total purchase volume up almost 2% above last year at this time,” said Mike Fratantoni, MBA’s SVP and chief economist. “Mortgage rates remained near 7%, a key psychological level, which likely continues to slow the pace of activity for both refinances and purchases. Incoming economic data are likely to keep the Federal Reserve on hold for now, while uncertainties about economic policy are likely to keep longer-term rates, including mortgage rates, steady at these levels.”
The numbers
The Market Composite Index, a measure of mortgage loan application volume, increased 0.1% on a seasonally adjusted basis from one week earlier, MBA reported. On an unadjusted basis, the Index increased 3% compared with the previous week. The Refinance Index decreased 3% from the previous week and was 42% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 7% compared with the previous week and was 2% higher than the same week one year ago,” MBA noted.
The refinance share of mortgage activity decreased to 40.4% of total applications from 42.7% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.5% of total applications.
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