Mortgage Applications Today: Demand Drops Again as Experts Blame Decline on Historic Winter Storms

Mortgage applications decreased 8.9% for the week ending Jan. 30, according to the Mortgage Bankers Association. This is the second week in a row the demand for home loans has declined.

The Market Composite Index, a measure of mortgage loan application volume, decreased 8.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4% compared with the previous week.

The decrease comes as mortgage interest rates for a 30-year fixed home loan edged up to 6.10% for the week ending Jan. 29, according to Freddie Mac.

The Refinance Index decreased 5% from the previous week and was 117% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 14% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 4% higher than the same week one year ago.

"Application volume was down last week, led by a 14 percent drop in purchase applications. Winter Storm Fern likely had an impact as much of the country was snowed in, hampering homebuying activity,” said Joel Kan, MBA’s vice president and deputy chief economist.

"The annual increase in purchase applications was the weakest since April 2025. Refinance activity also decreased over the week, despite mortgage rates moving lower. The 30-year fixed rate averaged 6.21 percent last week, a slight decline, but not significant enough to incentivize more borrowers to refinance. Additionally, this week’s results are being compared to the week that included the MLK Jr. holiday."

The refinance share of mortgage activity increased to 57.1% of total applications from 56.2% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5% of total applications.

The Federal Housing Administration (FHA) share of total applications decreased to 17.8% from 18.6% the week prior. Veterans Affairs loans share of total applications increased to 15.8% from 14.7% the week prior. The USDA share of total applications decreased to 0.4% from 0.5% the week prior.

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.21% from 6.24%, with points increasing to 0.56 from 0.55 (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 $832,750) decreased to 6.32% from 6.34%, with points decreasing to 0.34 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.04% from 6.06%, with points decreasing to 0.67 from 0.75 (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 5.61% from 5.64%, with points increasing to 0.63 from 0.61 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.37% from 5.56%, with points decreasing to 0.58 from 0.80 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

Mortgage rates calculated

Mortgage rates are calculated by various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.