Mortgage applications

January's median payment also grew at its fastest pace since October as volatile interest rates hit homebuyers' wallets, the Mortgage Bankers Association said.

Purchase volume was flat last week and up just 3% compared to the same time a year ago when the market faced similar rates in the high 6% range.

Overall home loan application activity fell 6.6% last week, according to the Mortgage Bankers Association, with volume resembling the frigid start to the year.

At the same time builders and lenders report contracting credit on offer, sentiment in the residential construction industry improved in the latter half of 2024.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.

The average purchase loan size hit a four-month high of $447,500 as fewer home shoppers are applying for government-backed mortgage products.

Consumers seeking jumbo home loans last week encountered the same 7.02% average contract interest rate as 30-year confirming loan borrowers.

Fewer consumers applied for government-backed loans last week, with average interest rates for Federal Housing Administration loans stuck in the high 6% range.

Consumers showed great interest for both purchases and refinances in the first holiday-free week of the year, breaking the cold streak that closed 2024.

Purchase and refinance activity declined last week as buyers shied away from the market over the holidays.