According to the latest data, the index saw a 6% decrease compared to the previous week.
The refinance index also experienced a 6% decline from the previous week but was significantly higher, showing a 110% increase compared to the same week last year. The refinance share of mortgage activity rose to 59.1% of total applications, up from 59.0% the previous week.
On a seasonally adjusted basis, the purchase index dropped by 4% from the previous week. Unadjusted purchase index numbers showed a 6% decrease compared to the previous week but were 16% higher than the same week last year.
“Despite a slight drop in mortgage rates, overall mortgage application volume declined last week,” stated Mike Fratantoni, MBA’s SVP and chief economist. “MBA anticipates that factors such as a weakening job market, persistent inflation, high home inventories, and stable mortgage rates will continue into the new year.”
Fratantoni added, “Purchase application volume was 16% higher compared to the same period last year, and we foresee a steady growth in home sales throughout 2026.”
In terms of loan products, the adjustable-rate mortgage (ARM) share increased to 8.1% of total applications. The Federal Housing Administration (FHA) share rose to 20.8%, the U.S. Department of Veterans Affairs (VA) share decreased to 15.3%, and the U.S. Department of Agriculture (USDA) share remained at 0.4%.
Interest rates for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.31%, while rates for jumbo loan balances increased to 6.52%. FHA-backed 30-year fixed-rate mortgages saw an increase to 6.14%, and 15-year fixed-rate mortgages decreased to 5.70%. The average contract interest rate for 5/1 ARMs rose to 5.79%.
The MBA announced that its offices will be closed from Thursday, Dec. 25, 2025, and will reopen on Friday, Jan. 2, 2026. As a result, the reports for the weeks ending Dec. 26, 2025, and Jan. 2, 2026, will both be released on Wednesday, Jan. 7, 2026.