Photo via Calculated Risk
Mortgage applications posted a significant decline in the latest weekly survey from the Mortgage Bankers Association, falling 9.7 percent over a two-week span ending January 2, 2026. The results, which include adjustments for holiday-related volatility, provide an updated snapshot of residential lending activity as the new year begins.
The seasonally adjusted Purchase Index declined 6 percent compared with the previous two-week period, signaling softness in home purchase demand. When measured without seasonal adjustments, the Purchase Index dropped 23 percent over the same timeframe, though year-over-year comparisons show a 10 percent gain from the equivalent week in 2025, suggesting mixed signals about the health of the housing market.
The mortgage data reflects ongoing consumer sensitivity to interest rates and economic conditions as households navigate affordability challenges in the residential real estate market.