by Calculated Risk on 3/26/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 2.0 percent 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 2.0 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2
percent compared with the previous week. The Refinance Index decreased 5 percent from the previous
week and was 63 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 1 percent
compared with the previous week and was 7 percent higher than the same week one year ago.“Purchase applications saw the strongest weekly pace in almost two months and were 7 percent higher
than a year ago. Last week’s purchase activity was driven primarily by a 6 percent 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 percent 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 percent last week.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.71 percent from 6.72 percent, with points decreasing to 0.60 from 0.64
(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 7% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
Purchase application activity is up about 24% from the lows in late October 2023 and is only 3% above the lowest levels during the housing bust.
The refinance index declined after increasing sharply the previous two weeks and remains very low.
