by Calculated Risk on 9/03/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 1.2 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending August 29, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 3
percent compared with the previous week. The Refinance Index increased 1 percent from the previous
week and was 20 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent
compared with the previous week and was 17 percent 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 percent. 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 average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.64 percent from 6.69 percent, with points decreasing to 0.59 from 0.60 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 17% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index has increased from the bottom, but remains very low.
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