US mortgage demand drops nearly 10% to end 2025

Mortgage applications in the US declined over the past two weeks, with refinancing applications also falling despite continued low interest rates.

According to the Mortgage Bankers Association (MBA), the volume of mortgage applications dropped 9.7% in the two weeks ending January 2, as last week's report was not released due to the New Year's holidays.

The average interest rate on a 30-year fixed-rate mortgage fell to its lowest level since September 2024, at 6.25%, compared to 6.32% the previous week.

Refinancing applications also declined by 14% over the past two weeks but remain 133% higher than at the same time last year.

“FHA refinance applications saw a 19% increase, although that was a partial rebound from a drop the week before,” said Joel Kan, an MBA economist, in the release.