Mortgage applications

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.

Refinance demand fell precipitously as average contract interest-rates for most loans rose in the two-week leadup to Christmas.

Purchase activity was buoyed last week by conventional and Department of Veterans Affairs-backed loan activity.

The sales pace of new constructions in November was the third highest this year, according to the Mortgage Bankers Association.

Department of Veterans Affairs-backed refinances were up 85% weekly, contributing to a busy week for the loan type.

Pressing items in the mortgage industry include a behind-the-scenes look at the issues plaguing USAA, a recent lawsuit at Movement Mortgage and more.