by Calculated Risk on 5/14/2025 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 1.1 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 9, 2025.The Market Composite Index, a measure of mortgage loan application volume, increased 1.1 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1
percent compared with the previous week. The Refinance Index decreased 0.4 percent from the previous
week and was 44 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 2 percent
compared with the previous week and was 18 percent higher than the same week one year ago.“Last week saw steadier mortgage rates, as the FOMC meeting played as predicted, and market
movements led to a small two-basis point increase in the 30-year conforming rate to 6.86 percent,” said
Mike Fratantoni, MBA’s SVP and Chief Economist. “Refinance volume was little changed for the week,
with a small increase in government refinances, and a decrease in conventional refinances. The news for
the week was the growth in purchase applications, up 2.3 percent and almost 18 percent higher than last
year’s pace. Despite the economic uncertainty, the increase in home inventory means there are additional
properties to buy, unlike the last two years, and this supply is supporting more transactions.”Added Fratantoni, “There was a notable gain in government purchase applications, up almost 5 percent
for the week and 40 percent on an annual basis.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) increased to 6.86 percent from 6.84 percent, with points remaining unchanged at 0.68
(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 18% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index decreased and remained very low.
