The volume of mortgage applications in the US rose 4.8% in the first week of December compared with the previous week, rebounding from a three-month low, according to data from the Mortgage Bankers Association (MBA). Applications to refinance a home loan surged 14.3% from the prior week and were 88% higher than the same week last year. The refinance share of total mortgage activity rose to 58.2% from 53.0% the previous week. Demand for Federal Housing Administration (FHA) refinances jumped 24% as the FHA 30-year fixed-rate fell to 6.08%, the lowest level since September 2024. In contrast, the average rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) edged up slightly to 6.33% from 6.32%. Meanwhile, applications for mortgages to purchase a home declined 2.4% for the week but remained 19% higher than a year ago, with potential buyers also turning to FHA loans for additional savings.