Mortgage application activity soared during the week ending Jan. 9, according to data from the Mortgage Bankers Association (MBA). The data included an adjustment for the New Year’s Day holiday.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, jumped by 28.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index skyrocketed by 65% compared with the previous week.
The seasonally adjusted Purchase Index increased 16% from one week earlier while the unadjusted index rose by 51% – the latter was 13% higher than the same week one year ago. The Refinance Index took a 40% upswing from the previous week and was 128% higher than the same week one year ago. The refinance share of mortgage activity expanded to 60.2% of total applications from 56.6%.
Among the federal programs, the FHA share of total applications decreased to 19.2% from 20.0% the week prior while the VA share of total applications decreased to 16.1% from 17.3% and the USDA share of total applications remained unchanged at 0.4%.
“Mortgage rates dropped lower last week following the announcement of increased MBS purchases by the GSEs. Lower rates, including the 30-year fixed rate declining to 6.18%, sparked an increase in refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist. “Compared to a holiday adjusted week, refinance applications surged 40% to the strongest weekly pace since October 2025. The average loan size for refinance applications was also higher, as borrowers with larger loan sizes are typically more sensitive to changes in rates. Purchase applications also jumped last week and were 13% ahead of last year’s pace, as lower rates and higher inventory kept potential homebuyers active in the market.”
