The new year began on a positive note for the mortgage space, according to data from the Mortgage Bankers Association (MBA) for the week ending Jan. 5.

The Market Composite Index, the MBA’s measure of mortgage loan application volume, jumped by 9.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index soared by 45% from the previous week.

The seasonally adjusted Purchase Index rose by 6% from one week earlier while the unadjusted Purchase Index increased 40% — however, the latter was also 16% lower than the same week one year ago.

The holiday adjusted Refinance Index increased 19% from the previous week and was 30% higher than the same week one year ago. The unadjusted Refinance Index increased 53% from the previous week and was 17% higher than the same week one year ago. The refinance share of mortgage activity increased to 38.3% of total applications from 36.3% in the previous week.

Among the federal programs, the FHA share of total applications dipped to 14.4% from 14.5% the week prior while the VA share of total applications increased to 16.3% from 14.6% and the USDA share of total applications decreased to 0.4% from 0.5%.

“Despite an uptick in mortgage rates to start 2024, applications increased after adjusting for the holiday,” said Joel Kan, MBA’s vice president and deputy chief economist. “The increase in purchase and refinance applications for both conventional and government loans is promising to start the year but was likely due to some catch-up in activity after the holiday season and year-end rate declines. Mortgage rates and applications have been volatile in recent weeks and overall activity remains low.”