Mortgage Applications Decrease in Latest MBA Weekly Survey

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Mortgage applications decreased 2% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 21, 2025. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2% compared with the previous week. The Refinance Index decreased 5% from the previous week and was 63% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 1% compared with the previous week and was 7% higher than the same week one year ago.

“Purchase applications saw the strongest weekly pace in almost two months and were 7% higher than a year ago. Last week’s purchase activity was driven primarily by a 6% increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Additionally, VA purchase applications saw a modest increase over the week. Overall applications declined, however, as refinance applications were down 5% to its lowest level in a month.”

Added Kan, “Markets remained focused on potential trade policy changes, while the Fed held the funds rate its current level, resulting in the 30-year fixed rate averaging 6.71% last week.”

The refinance share of mortgage activity decreased to 40.4% of total applications from 42% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.3% of total applications.

The FHA share of total applications remained unchanged at 16.5% from the week prior. The VA share of total applications decreased to 14.5% from 14.6% the week prior. The USDA share of total applications increased to 0.6% from 0.4% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.71% from 6.72%, with points decreasing to 0.60 from 0.64 (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 6.77% from 6.78%, with points increasing to 0.50 from 0.38 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.4%, with points increasing to 0.74 from 0.72 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 6.08%, with points increasing to 0.67 from 0.59 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to 5.89% from 5.84%, with points increasing to 0.59 from 0.38 (including the origination fee) for 80% LTV loans.  The effective rate increased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.

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.