The Mortgage
Bankers Association (MBA) announced
on Wednesday that the mortgage application volume in the U.S. declined by 3.7 per cent in the week ended January 3, following a 12.6
per cent plunge the week before. This
marked the fourth straight weekly drop in total mortgage application volume.
According to
the MBA’s data, last week’s fall in mortgage applications reflected
a 6.6 per cent tumble in mortgage applications to purchase a home that was partly offset by a 1.5 per cent advance
in mortgage refinance applications.
The report also
showed that the average fixed 30-year mortgage rate rose from 6.97 per cent to 6.99 per
cent, the highest level since early
July.
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that purchase applications declined for both conventional and
government loans and dropped to the slowest weekly pace since February 2024. “Refinance
applications increased despite higher rates, but the increase was compared to
recent low levels and was entirely driven by an increase in VA refinances,
which continue to show weekly swings,” he
added.