by Calculated Risk on 5/07/2025 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 11.0 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 2, 2025.The Market Composite Index, a measure of mortgage loan application volume, increased 11.0 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12
percent compared with the previous week. The Refinance Index increased 11 percent from the previous
week and was 51 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 11 percent from one week earlier. The unadjusted Purchase Index increased 12 percent
compared with the previous week and was 13 percent higher than the same week one year ago.“The economic news last week included a negative reading for first-quarter GDP growth and further signs
of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact
on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate
declined to 6.84 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Conventional
purchase application volume increased 13 percent and was up 9 percent from year-ago levels, a
surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to
have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6
percent for the week, led by a 9 percent growth in FHA purchase applications.”Added Fratantoni, “With rates moving lower, refinance volume increased 11 percent, led by VA refinance
applications, which were up 26 percent.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.84 percent from 6.89 percent, with points increasing to 0.68 from 0.67
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased
from last week.
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 13% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index increased but remained very low.
