FX.co ★ US Mortgage Applications Rebound in Early December

In the first week of December, mortgage applications in the United States increased by 4.8% compared to the previous week, recovering from a three-month low, according to the Mortgage Bankers Association (MBA). Home loan refinance applications saw a notable rise, jumping 14.3% from the prior week and showing an impressive 88% increase from the same period last year. The share of refinancing within total mortgage activity grew to 58.2% from 53.0% the previous week. Notably, demand for Federal Housing Administration (FHA) refinancing increased by 24%, driven by a drop in the FHA 30-year fixed-rate to 6.08%, marking its lowest point since September 2024. On the other hand, the average rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) saw a slight uptick to 6.33% from 6.32%. Conversely, applications for home purchase mortgages declined by 2.4% during the week but were still 19% higher than the previous year, as potential buyers explored FHA loans for further cost savings.