Mortgage Applications Decrease in Latest MBA Weekly Survey
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Mortgage applications decreased 1.2% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Feb. 21, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4% compared with the previous week. The Refinance Index decreased 4% from the previous week and was 45% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 0% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 3% higher than the same week one year ago.
Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market. This pushed mortgage rates lower, with the 30-year fixed rate decreasing to 6.88%, the lowest rate since mid-December,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Applications were about 1% lower for the week, which included the President’s Day holiday, as purchase applications stayed flat from a week ago while refinance applications saw a small decline. Purchase applications were up 3% from the same week last year. Increasing for-sale inventory in some markets has provided prospective buyers more options as we approach the spring homebuying season.”
Added Kan, “Although overall refinance application activity remained fairly weak, FHA refinance applications saw an 8% increase over the week. Compared to last year, overall refinance applications were up 45%.”
The refinance share of mortgage activity increased to 38.9% of total applications from 38.7% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.4% of total applications.
The FHA share of total applications increased to 17.4% from 16.6% the week prior. The VA share of total applications decreased to 13.4% from 14.2% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.88% from 6.93%, with points decreasing to 0.61 from 0.66 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $766,550) decreased to 7% from 7.03%, with points decreasing to 0.37 from 0.53 (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 6.57% from 6.70%, with points decreasing to 0.80 from 0.87 (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 decreased to 6.25% from 6.31%, with points decreasing to 0.59 from 0.70 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. The average contract interest rate for 5/1 ARMs decreased to 6.05% from 6.08%, with points decreasing to 0.44 from 0.77 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
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The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
