Mortgage applications

Royal Bank of Canada executives said they plan to start originating more mortgages in the United States, and they indicated that they may ditch the City National Bank brand.

Government-backed lending drove an increase in purchase mortgages for a second straight week, even as interest rates failed to drive refinance activity.

The average size of purchase applications fell below the $400,000 mark, reflecting first-time home buyer interest, the Mortgage Bankers Association said.

Refinance activity was up 16% from the end of February while purchase applications rose mildly, on the strength of fading rates amid larger economic woes.

The average 30-year fixed-rate mortgage fell to its lowest point so far in 2025, driving refinance activity 83% higher than the same time a year ago.

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.

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.