Applications Fell After Trump’s Inauguration

Mortgage applications slipped in the wake of President Donald Trump’s inauguration.

The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index — a measure of mortgage loan application volume — decreased by 2% last week after stagnating the week prior.

The data includes an adjustment for the Martin Luther King holiday.

Rates didn’t budge from 7.02%, but buyers weren’t enticed by their stability.

Adjusted purchase applications slipped by 0.4%, while the unadjusted index was down 4% and 7% lower year-over-year.

But refinances were the biggest hit to application activity, falling 7% across both conventional and government loans. Their share of mortgage activity fell to 37.1% of total applications.

“Purchase activity decreased slightly, but applications for FHA purchase loans were a bright spot, increasing by 2%. New and existing-home sales ended 2024 on a strong note, and if mortgage rates continue to stabilize and for-sale inventory loosens, we expect a gradual pick up in purchase activity in the coming months,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. 

Both new and existing sales experienced a boost in December, a major turnaround from November that surprised analysts.

Existing sales particularly saw their largest year-over-year gain since June 2021.

Home price appreciation reversed a downward trend in November thanks to demand in Northeastern cities propping up national numbers, but it continues to cool nationally.

“With the exception of pockets of above-trend performance, national home prices are trending below historical averages,” Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets for the S&P Dow Jones Indices, commented.