Mortgage Applications Decreased Over a Two-Week Period

by Calculated Risk on 1/07/2026 07:00:00 AM

From the MBA: MMortgage Applications Decreased Over a Two-Week Period in Latest
MBA Weekly Survey

Mortgage applications decreased 9.7 percent from two
weeks earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending January 2, 2026. The results include an adjustment for the
holidays.

The Market Composite Index, a measure of mortgage loan application volume, decreased 9.7 percent on
a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased 28
percent compared with two weeks ago. The holiday adjusted Refinance Index decreased 14 percent from
two weeks ago and was 133 percent higher than the same week one year ago. The unadjusted
Refinance Index decreased 31 percent from two weeks ago and was 108 percent higher than the same
week one year ago. The seasonally adjusted Purchase Index decreased 6 percent from two weeks
earlier. The unadjusted Purchase Index decreased 23 percent compared with two weeks ago and was 10
percent higher than the same week one year ago.

“Mortgage rates started the New Year with a decline to 6.25 percent, the lowest level since September
2024. Refinance applications were up 7 percent for the week but were at a slower pace than in the weeks
leading up to the holidays,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “FHA
refinance applications saw a 19 percent increase, although that was a partial rebound from a drop the
week before. MBA continues to expect mortgage rates to stay around current levels, with spells of
refinance opportunities in the weeks when rates move lower.”

Added Kan, “Purchase applications were 10 percent higher than the same week a year ago but were
down over the week following decreases in conventional and FHA applications. The average loan size
was $408,700, the smallest in a year, driven by lower average loan sizes across both conventional and
government loan types.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.25 percent from 6.32 percent, with points decreasing to 0.57 from 0.59
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added

Click on graph for larger image.

The first graph shows the MBA mortgage purchase index.

According to the MBA, purchase activity is up 10% year-over-year unadjusted. 

Red is a four-week average (blue is weekly).