Mortgage application volumes rose 4.8% on a seasonally adjusted basis for the week ending Dec. 5, driven largely by a double-digit jump in refinance activity, according to the latest survey from the Mortgage Bankers Association (MBA).
The surge highlights a distinct split in the market: While standard purchase applications slipped slightly, government-backed refinances spiked 24% as Federal Housing Administration (FHA) rates hit their lower level since September 2024.
Overall, the market has shown resilience, with total purchase activity tracking 19% higher than the same period last year, signaling that improving inventory and affordability are keeping buyers engaged despite weekly volatility.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 4.8% on a seasonally adjusted basis from last week. On an unadjusted basis, the index jumped 49%, a figure heavily influenced by the adjustment for the Thanksgiving holiday in the prior week’s data.
The week’s growth was primarily fueled by refinances, which increased 14% from last week’s figures. Activity in this space is now 88% higher than the same week one year ago.
“Compared to the prior week’s data, which included an adjustment for the Thanksgiving holiday, mortgage application activity increased last week, driven by an uptick in refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist, in a press release.
He noted that while conventional refinance applications rose nearly 8%, government-backed loans saw much stronger movement. Consequently, the refinance share of mortgage activity expanded to 58.2% of total applications, up from 53% the week prior.
The seasonally adjusted Purchase Index decreased 2% from last week’s survey. However, it increased 32% on an unadjusted basis and sits 19% higher than the same week a year ago.
“Conventional purchase applications were down for the week, but there was a 5% increase in FHA purchase applications as prospective homebuyers continue to seek lower downpayment loans,” Kan said.
He added that overall purchase applications continue to run ahead of last year’s pace as “broader housing inventory and affordability conditions improve gradually.”
Interest rates were mixed across loan types. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) ticked up to 6.33% from 6.22%, according to MBA data.
In contrast, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.08%, down from 6.12%. This drop in the FHA rate coincided with the increase in the FHA share of total applications, which rose from 18.3% last week to 20.2% this week.
Jumbo loan rates also experienced upward movement, with the 30-year fixed rate for loans greater than $806,500 increasing to 6.46% from 6.4%.
The MBA survey, which has been conduced weekly since 1990, covers over 75% of all U.S. retail residential mortgage applications.
