The seasonally adjusted purchase index decreased by 4% from the previous week and by 6% on an unadjusted basis. Year over year, the unadjusted purchase index was 16% higher.
Mike Fratantoni, SVP and chief economist for the MBA, said the decline is despite a slide in mortgage rates.
“Overall mortgage application volume fell last week, despite the slight decline in mortgage rates,” Fratantoni said. “MBA expects the trends of a softening job market, sticky inflation, elevated home inventories, and steady mortgage rates will persist into the new year.
“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.”
Rates slightly down
The average contract interest rate for confirming 30-year fixed-rate mortgages decreased to 6.31% last week, down from 6.38% the week before. Points decreased as well to 0.57 from 0.62, excluding the origination fee, for 80% loan-to-value (LTV) loans.
