"Overall mortgage application volume fell last week, despite the slight decline in mortgage rates, said Mike Fratantoni, MBA's SVP and chief economist. MBA expects the trends of a softening job market, sticky inflation, elevated home inventories and steady mortgage rates will persist into the new year. Added Fratantoni, Purchase application volume last week was 16% higher than a year earlier. We are forecasting continued, modest growth in terms of home sales in 2026."
"The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.31% from 6.38%, while rates for 30-year fixed-rate mortgages with jumbo loan balances increased to 6.52% from 6.44%. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.14% from 6.12% and rates for 15-year fixed-rate mortgages decreased to 5.70% from 5.72%. The average contract interest rate for 5/1 ARMs increased to 5.79% from 5.63%."
On an unadjusted basis, the overall mortgage application index decreased 6% from the previous week. The refinance index fell 6% week-over-week and was 110% higher than the same week one year earlier, with the refinance share rising to 59.1% of total applications. The seasonally adjusted purchase index declined 4% week-over-week; the unadjusted purchase index dropped 6% and remained 16% higher than a year earlier. ARM share rose to 8.1% of activity; FHA share increased to 20.8%, VA share fell to 15.3%, and USDA share stayed at 0.4%. Rates were mixed: 30-year conforming fell to 6.31%, jumbo 30-year rose to 6.52%, FHA 30-year rose to 6.14%, 15-year fell to 5.70%, and 5/1 ARMs rose to 5.79%. Economic conditions of a softening job market, sticky inflation, elevated inventories and steady mortgage rates are expected to continue into the new year, with modest home-sales growth forecast for 2026.
Read at www.housingwire.com
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