WASHINGTON — Mortgage applications decreased 5.0% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Dec. 19, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 5.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 6% compared with the previous week. The Refinance Index decreased 6% from the previous week and was 110% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 6% compared with the previous week and was 16% higher than the same week one year ago.
“Overall mortgage application volume fell last week, despite the slight decline in mortgage rates,” said Mike Fratantoni, MBA’s SVP and chief economist. “MBA expects the trends of a softening job market, sticky inflation, elevated home inventories, and steady mortgage rates will persist into the new year.”
“Purchase application volume last week was 16% higher than a year earlier. We are forecasting continued, modest growth in terms of home sales in 2026,” added Fratantoni.
The refinance share of mortgage activity increased to 59.1% of total applications from 59.0% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.1% of total applications.
FHA Share
The FHA share of total applications increased to 20.8% from 19.5% the week prior. The VA share of total applications decreased to 15.3% from 16.6% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.31% from 6.38%, with points decreasing to 0.57 from 0.62 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.52% from 6.44%, with points decreasing to 0.39 from 0.41 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.14% from 6.12%, with points decreasing to 0.75 from 0.82 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.70% from 5.72%, with points decreasing to 0.64 from 0.74 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.79% from 5.63%, with points increasing to 0.47 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.