Mortgage applications declined for the third week in a row. Home loan applications decreased 0.3% from one week prior for the week ending Feb. 6, according to the Mortgage Bankers Association.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.3% on a seasonally adjusted basis from the week prior. On an unadjusted basis, the Index increased 2% compared with the previous week.
The decline comes as mortgage interest rates for a 30-year fixed home loan rose to 6.11% for the week ending Feb. 5, according to Freddie Mac. That’s 0.1% higher from one week ago but much lower than the same period in 2025 when rates averaged 6.89%.
The Refinance Index increased 1% from the previous week and was 101% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 2% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week and was 4% higher than the same week one year ago.
“Mortgage applications were relatively flat over the week, but it was a mixed bag for the different loan types. The 30-year fixed rate was unchanged at 6.21 percent, and conventional applications declined for both purchases and refinances as borrowers held out for another drop in rates or shifted to other loan types,” said Joel Kan, MBA’s vice president and deputy chief economist.
The refinance share of mortgage activity decreased to 56.4% of total applications from 57.1% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8% of total applications.
The Federal Housing Administration (FHA) share of total applications increased to 18.4% from 17.8% the week prior. Veterans Affairs share of total applications increased to 16% from 15.8% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
“FHA purchase and refinance applications increased, helped partially by the FHA rate declining and remaining 20 basis points lower than the conforming 30-year fixed rate,” Kan said.
“Borrowers are increasingly utilizing FHA loans as affordability challenges remain, despite recent improvements. Similarly, the ARM share increased to a seven-week high with ARM rates almost a percentage point lower than fixed rates.”
Contract rates
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) remained unchanged at 6.21%, with points remaining unchanged at 0.56 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.30% from 6.32%, with points remaining unchanged at 0.34 (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 6.01% from 6.04%, with points increasing to 0.68 from 0.67 (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 increased to 5.65% from 5.61%, with points increasing to 0.68 from 0.63 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 5.33% from 5.37%, with points increasing to 0.67 from 0.58 (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.
