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Mortgage applications fell 0.7% compared to the previous week. according to data from the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey for the week ending December 13, 2024.

The Market Composite Index, a measure of mortgage loan application volume, fell a seasonally adjusted 0.7% from the previous week. On an unadjusted basis, the index fell 2% compared to the previous week. The Refinance Index fell 3% compared to the previous week and was 41% higher than the same week a year ago. The seasonally adjusted purchasing index rose 1% compared to the previous week. The unadjusted purchase index fell 2% from the previous week and was 6% higher than the same week a year ago.

“Mortgage rates rose last week, causing overall mortgage application activity to decline for the first time in five weeks,” said Joel Kan, MBA vice president and deputy chief economist. “Conventional and VA purchasing applications drove an increase in purchasing activity on a weekly and annual basis this week. Shoppers remained active in the purchasing market, supported by a gradual improvement in inventory conditions and a more positive outlook for the economy and labor market. Refinance applications declined last week, driven primarily by VA refinances, which fell 17% after two weeks of increases.”

The refinancing share of mortgage activity fell to 46.7% of all applications from 46.8% the previous week. The share of adjustable rate mortgages (ARMs) remained unchanged at 5.3% of total applications.

The FHA share of total applications rose to 17.6% from 16.5% the week before. The VA share of total claims fell to 15.3% from 16.3% the week before. The USDA share of total applications rose to 0.5% from 0.4% the week before.

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

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

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The survey includes U.S. closed-end residential mortgage applications submitted through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage lenders, commercial banks, savings banks and credit unions. Base period and value for all indices is March 16, 1990=100.