FX.co ★ US Mortgage Rates Fall for 3rd Week: MBA

The Mortgage Bankers Association recently reported that the average contract interest rate for 30-year fixed-rate mortgages on conforming loans, up to $806,500 in the United States, decreased for the third consecutive week to 6.16%, as of the week ending January 16. This marks the lowest rate recorded since September 2024. Consequently, there was a 14.1% increase in mortgage applications, following a significant 28.5% rise in the preceding week. Additionally, refinancing applications surged by 20.4%, while the purchase index saw a 5.1% growth. "The decline in mortgage rates last week spurred another substantial rise in refinance applications," noted Joel Kan, MBA’s vice president, highlighting it as the most robust activity since September 2025. The lowered rates particularly encouraged increased refinance activity among conventional and VA borrowers, with rises of 29% and 26%, respectively. Refinancing applications made up over 60% of total applications, and there was also an uptick in the average loan size.