Overall applications up 16% from the previous year
In the final weekly report from the Mortgage Bankers Association (MBA) for 2025, weekly mortgage applications fell 5% on a seasonally adjusted basis from the previous week.
The data, which runs through the week ending December 19, showed a 6% fall on an unadjusted basis from the previous week. It’s the second straight week and the third in the last four that saw a decline.
Despite falling 6% from the previous week, the refinance index was 110% higher than the same week last year.
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.
For jumbo 30-year mortgages, the interest rate rose to 6.52%, up from 6.44% the week before. Points decreased here as well, falling to 0.39 from 0.41 the previous week.
For FHA loans, rates on 30-year mortgages increased slightly to 6.14%, up from 6.12%. Points decreased from 0.82 the previous week to 0.75.
For 15-year fixed-rate mortgages, rates fell to 5.70% from 5.72% the week before. Points dropped from 0.74 to 0.64. For 5/1 adjustable-rate mortgages (ARMs), the rate fell to 5.79% from 5.83% week-over-week. Points increased to 0.47 from 0.35 the previous week.
Refinance share increased
The percentage of activity attributed to refinance mortgages increased slightly week over week, rising from 59% to 59.1%. ARM share of activity increased to 8.1% of total applications.
FHA loans made up 20.8% of total applications, up from 19.5% the week before. VA loans fell to 15.3% from 16.6% the week before. USDA loans accounted for just 0.4% of applications, unchanged from the prior week.
The survey covers US closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions.
Due to the upcoming holiday shutdown, the MBA reports for the weeks ending December 26 and January 2, 2026, will be published on Wednesday, January 7, 2026.
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