Mortgage applications in the U.S. increased by 2.2% in the final week of January compared to the previous week, rebounding from a 2% decline in the prior period and continuing the upward trend seen earlier in the month, according to data from the Mortgage Bankers Association. This modest rise aligned with a slight pullback in benchmark mortgage rates, which dipped below 7% as long-term Treasury yields declined.
US mortgage applications edge higher
Refinance applications, which tend to respond more quickly to short-term interest rate changes, surged by 12% from the previous week. Meanwhile, applications for home purchase mortgages dropped by 4%, reflecting subdued housing demand at the start of the year. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) fell to 6.97% in the week ending January 31, 2025—the lowest level since December 2024—down from 7.02% in the previous two weeks, according to the MBA.
MBA comment
“Mortgage rates moved lower last week, consistent with lower Treasury yields following the FOMC meeting and a volatile week for the stock market,” said Joel Kan, MBA’s vice president and deputy chief economist.
