Mortgage application activity came off the Thanksgiving holiday weekend on the upswing, according to data from the Mortgage Bankers Association (MBA).
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 4.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased 49% versus the previous week.
The seasonally adjusted Purchase Index decreased by 2% from one week earlier while the unadjusted index increased 32% and was 19% higher than the same week one year ago. The Refinance Index increased 14% from the previous week and was 88% higher than the same week one year ago, while the refinance share of mortgage activity jumped to 58.2% of total applications from 53.0% in the previous week.
Among the federal programs, the FHA share of total applications increased to 20.2% from 18.3% the week prior while the VA share of total applications increased to 16.4% from 15.0% and the USDA share of total applications remained unchanged at 0.3%.
“Compared to the prior week’s data, which included an adjustment for the Thanksgiving holiday, mortgage application activity increased last week, driven by an uptick in refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist. “Conventional refinance applications were up almost 8% and government refinances were up 24% as the FHA rate dipped to its lowest level since September 2024. Conventional purchase applications were down for the week, but there was a 5% increase in FHA purchase applications as prospective homebuyers continue to seek lower downpayment loans. Overall purchase applications continued to run ahead of 2024’s pace as broader housing inventory and affordability conditions improve gradually.”
