Other component indexes increase as well

Mortgage applications increased by 33.3% for the week ending January 10, 2025, following a decline the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
This jump, which comes amid ongoing concerns about inflation and rising bond yields, reflects an adjustment for the New Year’s holiday and signals increased activity in both the refinance and home purchase markets.
The Market Composite Index, which tracks the volume of mortgage loan applications, saw a 33.3% increase on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index grew by 52%.
The Refinance Index climbed 44% from the previous week and was up 22% from the same week last year.
The seasonally adjusted Purchase Index increased by 27%, while the unadjusted Purchase Index rose by 48% from the prior week. However, the unadjusted Purchase Index was 2% lower than the same week one year ago.
MBA vice president and deputy chief economist, Joel Kan said that bond yields both in the US and abroad continued to rise due to inflation concerns and high budget deficits, contributing to higher mortgage rates.
"The 30-year fixed rate is now at 7.09% – its highest level since May 2024,” he said.
Kan also pointed out the seasonal volatility of application volumes, advising that the focus should be on the level of applications rather than percentage changes.
"Total applications were up by 33.3%, the highest level in a month, as both purchase and refinance applications saw large percentage increases over the week,” he added.
The share of refinancing activity increased to 42.7% of total applications, up from 40.8% the previous week. The share of adjustable-rate mortgages (ARM) also grew, reaching 5.0% of total applications.
Meanwhile, the Federal Housing Administration (FHA) share remained stable at 16.9%, while the Veterans Affairs share decreased to 15.7% from 16.2%, and the US Department of Agriculture share fell to 0.5% from 0.6%.
Interest rates for fixed-rate mortgages also saw notable increases.
The average rate for 30-year fixed-rate loans with conforming balances climbed to 7.09%, up from 6.99%, while the rate for jumbo loans rose to 7.05% from 6.99%.
For 30-year FHA loans, the average rate increased to 6.76%, up from 6.65%.
The 15-year fixed-rate mortgage rate fell slightly to 6.43% from 6.46%.
Rates for 5/1 ARMs increased to 6.18% from 5.98%.
The MBA's weekly survey, conducted since 1990, tracks mortgage applications from banks, credit unions, and other financial institutions.
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