On an unadjusted basis, the index measuring applications increased 19% compared with the previous week. The refinance index increased 12% from the previous week and was 17% higher compared to the same week one year ago.
The seasonally adjusted purchase index decreased by 4% from one week earlier while the unadjusted purchase index increased 15% compared with the previous week. Year over year, the unadjusted purchase index was 0.2% higher.
“Mortgage rates moved lower last week, consistent with lower Treasury yields following the FOMC meeting and a volatile week for [the] stock market. The 30-year fixed rate declined to its lowest level in six weeks at 6.97%,” said Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage applications responded to these lower rates and were up for the week overall, driven by a 12% increase in refinance applications, which had their strongest week since December 2024.”
Kan added that purchase activity had a rougher week. “The average loan size for a purchase loan has increased since the start of the year and continued that trend last week with weaker government purchase activity, which reached $447,300, the highest level since October 2024,” he said.
The refinance share of mortgage activity increased to 39.0% of total applications compared to 37.1% the previous week. Adjustable-rate mortgage (ARM) activity remained unchanged at 5.8% of total applications.
FHA applications saw a decrease to 16.2% from last week’s 16.7%. The VA share of total applications increased marginally to 13.3% from 13.2% the week prior. Like ARM activity, the USDA share of total applications remained unchanged at 0.5% from the week prior.
Average contract interest rates for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.97% from 7.02% and jumbo loans for 30-year fixed-rate mortgages also saw a small decrease to 7.01% from 7.02%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.69% from 6.72% and the average rate for 15-year fixed-rate mortgages decreased to 6.36% from 6.37%.
