“Mortgage applications were relatively flat last week, but it was a mixed bag across loan types. The 30-year fixed rate was unchanged at 6.21%, and conventional applications fell for both purchases and refinances as borrowers held out for another rate cut or switched to other types of loans,” said Joel Kan, MBA vice president and deputy chief economist. “FHA purchase and refinancing applications increased, helped in part by FHA rates declining and remaining 20 basis points below the conforming 30-year fixed rate.
“Borrowers are increasingly turning to FHA loans as affordability challenges persist despite recent improvements. Similarly, ARM stock rose to a seven-week high, with the ARM rate nearly a percentage point lower than the fixed rate,” Kan added.
All products saw an increase in activity compared to the previous week, apart from the US Department of Agriculture (USDA) share of total applications, which remained unchanged at 0.4%.
The share of the adjustable-rate mortgage (ARM) in activity increased to 8% of total applications. The Federal Housing Administration (FHA) stock rose 60 basis points to 18.4%, and the The U.S. Department of Veterans Affairs (VA) share grew by 20 basis points to 16%.
The average contract rate for 30-year fixed-rate mortgages with conforming loan balances was unchanged at 6.21%, while the average rate for 30-year fixed-rate mortgages with large loan balances fell 2 basis points to 6.3%.
The average rate for 30-year mortgages backed by the FHA fell 3 basis points to 6.01%, while rates for 5/1 ARMs fell 4 basis points to 5.33%. Conversely, the average interest rate for mortgages with a term of 15 years increased by 4 basis points to 5.65%.
Xactus Mortgage Intent Index
Data from the Thrown The Mortgage Intent Index – which analyzes aggregated, anonymized credit-pull activity on the Xactus Intelligent Verification Platform – found that mortgage application activity increased this week as borrowers returned to the market following disruptions caused by Winter Storm Fern.
The index that tracks borrower intent rose 6.88% from the previous week, signaling a recovery in demand, said Thomas Lloyd, Xactus’ chief strategy officer.
Still, activity has not yet fully returned to pre-storm levels, indicating that lingering effects may continue to dampen momentum.
January ended with modest gains. Monthly volume increased 5.25% compared to January 2025, and year-to-date borrower intent is 2.2% higher than the same period last year, despite weaker activity over the past two weeks.
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