U.S. Mortgage Applications Increase a Marginal 0.1% in the January 17 Week
Summary
- Purchase applications rise 0.6% w/w while refinancing loan applications fall 2.9% w/w.
- Effective interest rate on 30-year fixed-rate loans drops to a still-high 7.20%.
- Average loan size rises to the highest since the December 13 week.
Mortgage applications edged up 0.1% w/w (2.9% y/y) in the week ending January 17 following a 33.3% rebound in the week ending January 10 and four straight weekly declines, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. The latest reading was the second successive weekly gain to the index level of 224.6, a six-week high. Applications for loans to purchase a house rose 0.6% (-6.5% y/y) in the January 17 week after a 26.9% jump in the January 10 week and three consecutive w/w decreases. Applications for loan refinancing fell 2.9% (+27.5% y/y) in the January 17 week, the first w/w fall since the December 27 week, following a 43.5% surge in the previous week.
Mortgage interest rates generally remained high; thus, having restrained mortgage applications. The effective interest rate on a 30-year fixed-rate loan dropped 8bps to a still-high 7.20% in the week ending January 17 after rising to 7.28% in the week ending January 10; it was up from a low of 6.29% in the week of September 20, 2024 but down from a high of 8.12% in the week of October 20, 2023. The rate on 15-year fixed-rate mortgages held steady at 6.61% in the January 17 week; it was down 83bps from a high of 7.44% in the week of October 27, 2023. The rate on 30-year jumbo loans declined 9bps to 7.13% in the January 17 week, the lowest since the December 13 week, from 7.22% in the prior week; it was down 86bps from a high of 7.99% in the week of October 27, 2023. By contrast, the rate on a 5-year ARM rose 24bps to 6.62% in the January 17 week from 6.38% in the previous week; it was above its recent low of 5.84% in the week of September 13, 2024 but down 69bps from a high of 7.31% in the week of October 27, 2023.
The share of applications for refinancing an existing loan fell to 40.4% of total applications in the week ending January 17 from 42.7% in the week ending January 10, registering the first w/w drop and the lowest since the December 27 week. That was down from 55.7% in the week of September 20, 2024. Meanwhile, the adjustable-rate mortgage (ARM) share of activity rose to 5.5% in the January 17 week, the highest since the December 20 week, from 5.0% in the prior week; it was slightly up from a low of 5.4% in the week of January 5, 2024 but below a high of 10.7% in the week of October 27, 2023.
The average size of a mortgage loan increased 1.8% w/w (-0.9% y/y) to $373,800 in the January 17 week, the highest since the December 13 week, after a 2.1% rebound to $367,100 in the January 10 week. The average size of a purchase loan rose 2.9% (1.5% y/y) to $431,600 in the January 17 week, the highest since the November 29 week, after a 1.3% rise to $419,600 in the prior week. In contrast, the average size of a loan to refinance a mortgage fell 2.9% (+3.6% y/y) to $288,300 in the January 17 week, the fourth w/w decline in five weeks, after a 6.0% rise to $296,800 in the previous week.
The Mortgage Bankers Association Survey covers 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver’s SURVEYS database.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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