Mortgage applications decreased 0.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 13, 2024.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week and was 41 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 6 percent higher than the same week one year ago.

“Mortgage rates increased last week, leading to overall mortgage application activity decreasing for the first time in five weeks," said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Conventional and VA purchase applications drove this week’s increase in purchase activity on a weekly and annual basis. Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market. Refinance applications declined last week, largely driven by VA refinances that were down 17 percent after two weeks of gains.”

The refinance share of mortgage activity decreased to 46.7 percent of total applications from 46.8 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.3 percent of total applications.

The FHA share of total applications increased to 17.6 percent from 16.5 percent the week prior. The VA share of total applications decreased to 15.3 percent from 16.3 percent the week prior. The USDA share of total applications increased to 0.5 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) increased to 6.75 percent from 6.67 percent, with points remaining unchanged at 0.66 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) increased to 6.86 percent from 6.79 percent, with points increasing to 0.61 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.49 percent from 6.47 percent, with points decreasing to 0.79 from 0.91 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.15 percent from 6.12 percent, with points increasing to 0.71 from 0.66 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 6.03 percent from 5.81 percent, with points increasing to 0.48 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.