U.S. Mortgage Applications Plunge 12.6% to Lowest Since COVID Crash as 30-Year Rates Hit 6.97%

Jan 2, 2025, 12:16 PM

U.S. mortgage applications fell sharply over the two weeks ending December 27, 2024, with a decline of 12.6% compared to the previous period, according to data from the Mortgage Bankers Association (MBA). This drop marks the worst two-week decline since the COVID crash. The MBA's 30-year mortgage rate rose to 6.97% from 6.75% during the same period, reaching nearly a six-month high. The purchase index decreased by 7% to 136.7 from 157.1, while the refinance index fell by 23% to 395.1 from 617.5. The overall Mortgage Market Index dropped to 174.9 from 224.0, the lowest since February 2023. The increase in mortgage rates, which were the highest since early July, has significantly impacted housing demand, contributing to the sharp decline in mortgage applications.