Mortgage demand drops nearly 10% to end 2025
CNBC••business
Key Points:
- Mortgage application volume fell 9.7% for the week ending January 2, 2026, despite a slight decrease in average 30-year fixed mortgage rates to 6.25%, the lowest since September 2024.
- Refinancing applications dropped 14% over two weeks but remain 133% higher than the same period last year, with FHA refinance applications increasing 19% after a prior decline.
- Purchase mortgage applications declined 6% from two weeks earlier but were still 10% higher year-over-year, with the average loan size dropping to $408,700, the smallest in a year.
- Demand for adjustable-rate mortgages (ARMs) decreased to 6.3% of total applications as
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