MBA: Mortgage Applications Decreased Over a Two-Week Period

Mortgage applications in the United States declined over a two-week period, according to the latest data from the Mortgage Bankers Association (MBA). The MBA’s Weekly Mortgage Applications Survey, released on January 7, 2026, showed a drop in both purchase and refinance applications. The association’s findings reflect broader trends in the housing market as economic conditions and interest rate expectations continue to influence borrower behavior.

The MBA’s most recent survey, covering the period ending January 2, 2026, reported a 2.3% decrease in the Market Composite Index, which tracks mortgage application volume. The seasonally adjusted Purchase Index fell by 3%, while the Refinance Index declined by 1.7%. These figures follow two consecutive weeks of mixed results, with some fluctuations driven by changing mortgage rates and seasonal adjustments.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, noted that mortgage rates edged slightly higher at the end of December before stabilizing in early January. “After a brief uptick in rates, we saw a pullback in both purchase and refinance activity,” Kan stated in a release accompanying the data. He added that homebuyers remained sensitive to rate movements, despite some stabilization in affordability conditions. The MBA’s survey covers over 75% of all U.S. retail residential mortgage applications.

The MBA’s weekly survey is closely watched by industry analysts and policymakers as a leading indicator of housing market activity. The decline in applications comes amid ongoing discussions about Federal Reserve policy and its potential impact on long-term interest rates. While mortgage rates have eased from recent highs, they remain elevated compared to pre-pandemic levels, keeping pressure on affordability for many prospective buyers.

Industry experts suggest that the housing market’s trajectory will depend heavily on future rate movements and job market stability. The MBA’s next survey, scheduled for release on January 14, 2026, will provide further insight into whether this two-week decline signals a broader slowdown or a temporary pause in activity.

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