Mortgage application volume retreated sharply for the week ending Jan. 30, dropping 8.9% on a seasonally adjusted basis as severe winter weather disrupted market activity, according to weekly data from the Mortgage Bankers Association (MBA).
The MBA’s Market Composite Index, a measure of mortgage loan application volume, decreased 8.9% from the week prior. On an unadjusted basis, the index posted a 4% weekly increase.
“Application volume was down last week, led by a 14% drop in purchase applications,” said Joel Kan, MBA’s vice president and deputy chief economist, in commentary attached to the data. “Winter Storm Fern likely had an impact as much of the country was snowed in, hampering homebuying activity.”
The seasonally adjusted Purchase Index fell 14% from the prior week, while the unadjusted Purchase Index increased 2% on the week, landing 4% higher than the same week last year.
Kan noted that the annual increase in purchase applications was the weakest observed since April 2025.
Refinance activity also cooled, decreasing 5% from the previous week, though the association’s Refinance Index remains 117% higher than the same week in 2025. Despite the drop in volume, the refinance share of total mortgage activity increased to 57.1%, up from 56.2% the previous week.
Interest rates dipped slightly across most loan types but failed to ignite significant borrower demand. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased three basis points to 6.21%, according to MBA data.
“The 30-year fixed rate averaged 6.21% last week, a slight decline, but not significant enough to incentivize more borrowers to refinance,” Kan noted in the report.
Other loan metrics showed mixed results. The adjustable-rate mortgage share of activity decreased to 7.5% of total applications. The Federal Housing Administration share of applications fell to 17.8% from 18.6%, while the Department of Veterans Affairs share increased from 14.7% to 15.8%. The U.S. Department of Agriculture’s application volume fell four basis points on the week.
