Mortgage applications decreased 21.9% from two weeks earlier, according to data from the Mortgage Bankers Association (MBA) for the week ending Dec. 27, 2024; the results included an adjustment to account for the Christmas holiday.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, decreased 21.9% on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the index dropped by 55% compared with two weeks ago.
The seasonally adjusted Purchase Index decreased 13% compared with two weeks ago while the unadjusted index was down by 48% compared with two weeks ago and was 17% lower than the same week one year ago.
The holiday adjusted Refinance Index fell 36% from two weeks ago, but it was 10% higher than the same week one year ago. The unadjusted Refinance Index decreased 62% from two weeks ago and was 6% lower than the same week one year ago. The refinance share of mortgage activity decreased to 39.4% of total applications from 44.3% the previous week.
Among the federal programs, the FHA share of total applications decreased to 16.6% from 17.2% the week prior while the VA share of total applications increased to 15.7% from 15.2% and the USDA share of total applications dipped to 0.4% from 0.5%.
“Mortgage rates moved higher through the last full week of 2024, reaching almost 7% for 30-year fixed-rate loans,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “Not surprisingly, this increase in rates – at a time when housing activity typically grinds to a halt – resulted in declines in both refinance and purchase applications.”
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