by Calculated Risk on 10/01/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 12.7 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending September 26, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 12.7 percent
on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13
percent compared with the previous week. The Refinance Index decreased 21 percent from the previous
week and was 16 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 1 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent
compared with the previous week and was 16 percent higher than the same week one year ago.“Mortgage rates increased to its highest level in three weeks as Treasury yields pushed higher on recent,
stronger than expected economic data. After the burst in refinancing activity over the past month, this
reversal in mortgage rates led to a sizeable drop in refinance applications, consistent with our view that
refinance opportunities this year will be short-lived,” said Joel Kan, MBA’s Vice President and Deputy
Chief Economist. “With the 30-year fixed rate now at 6.46 percent, refinance activity declined for all loan
types, including a 22 percent decrease in conventional refinances and 27 percent decrease in VA
refinances. The average loan size for refinances dropped to $380,100 from $461,300 two weeks ago as
these higher rates eliminated the refinance incentive for many borrowers with large loans.”Added Kan, “Purchase applications were down slightly over the week after three consecutive increases,
but the strength of the purchase market has also been impacted by other factors such as broader
economic conditions, the health of the job market, and housing inventory.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) increased to 6.46 percent from 6.34 percent, with points increasing to 0.61 from 0.57
(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 16% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index has increased significantly from the bottom as mortgage rates declined.
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