Mortgage Applications Decrease in Latest MBA Weekly Survey
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Mortgage applications decreased 1.2% from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Aug. 29, 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 3% compared with the previous week. The Refinance Index increased 1% from the previous week and was 20% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index decreased 6% compared with the previous week and was 17% higher than the same week one year ago.
“Mortgage rates declined last week, with the 30-year fixed rate decreasing to its lowest level since April to 6.64%. However, that was not enough to spark more application activity,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Refinance applications saw a small increase from the previous week, driven by FHA and VA refinance applications, but conventional refinances declined. The FHA rate is averaging about 30 basis points lower than the conventional rate in 2025, which has made those loans relatively more appealing to eligible borrowers. Purchase activity pulled back, after a four-week run of increases, as slower homebuying activity led to declines in applications across the various loan types.”
The refinance share of mortgage activity increased to 46.9% of total applications from 45.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.8% of total applications.
The FHA share of total applications increased to 19.9% from 19.1% the week prior. The VA share of total applications increased to 13.8% from 13.3% the week prior. The USDA share of total applications remained unchanged at 0.5% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.64% from 6.69%, with points decreasing to 0.59 from 0.60 (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 $806,500) decreased to 6.58% from 6.67%, with points decreasing to 0.39 from 0.44 (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 6.31% from 6.35%, with points decreasing to 0.74 from 0.80 (including the origination fee) for 80z% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.84% from 6.03%, with points increasing to 0.84 from 0.77 (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 5.9% from 5.94%, with points decreasing to 0.34 from 0.68 (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.
