WASHINGTON — Mortgage applications rebounded the week ending Jan. 5, 2024, seeing a 9.9% increase compared to the previous week, according to data from the Mortgage Bankers Association’s (MBA) seasonally adjusted index. The results included an adjustment for the New Year’s holiday.

On an unadjusted basis, the index increased 45% compared to the previous week. The holiday-adjusted refinance index increased 19% from the previous week and was 30% higher than the same week one year ago. The unadjusted refinance index increased 53% from the previous week and was 17% higher than the same week one year ago.

“Despite an uptick in mortgage rates to start 2024, applications increased after adjusting for the holiday,” said Joel Kan, MBA’s vice president and deputy chief economist. “The increase in purchase and refinance applications for both conventional and government loans is promising to start the year but was likely due to some catch-up in activity after the holiday season and year-end rate declines. Mortgage rates and applications have been volatile in recent weeks and overall activity remains low.”

The seasonally adjusted purchase index increased 6% from one week earlier. The unadjusted purchase index increased 40% compared with the previous week and was 16% lower than the same week one year ago.

Other details from the MBA’s index:

• The refinance share of mortgage activity increased to 38.3% of total applications from 36.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications.
• The FHA share of total applications decreased to 14.4% from 14.5% the week prior. The VA share of total applications increased to 16.3% from 14.6% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.
• The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.81% from 6.76%, with points remaining unchanged at 0.61 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
• The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) increased to 6.98% from 6.86%, with points increasing to 0.43 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 6.56% from 6.51%, with points decreasing to 0.84 from 0.86 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
• The average contract interest rate for 15-year fixed-rate mortgages increased to 6.41% from 6.26%, with points decreasing to 0.55 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
• The average contract interest rate for 5/1 ARMs increased to 6.17% from 5.71%, with points decreasing to 0.56 from 0.59 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.