Mortgage Applications Decrease in Latest MBA Weekly Survey

by Calculated Risk on 2/26/2025 07:00:00 AM

From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey

Mortgage applications decreased 1.2 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending February 21, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4
percent compared with the previous week. The Refinance Index decreased 4 percent from the previous
week and was 45 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 0 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent
compared with the previous week and was 3 percent higher than the same week one year ago.

“Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less
upbeat about the economy and job market. This pushed mortgage rates lower, with the 30-year fixed rate
decreasing to 6.88 percent, the lowest rate since mid-December,” said Joel Kan, MBA’s Vice President
and Deputy Chief Economist. “Applications were about one percent lower for the week, which included
the President’s Day holiday, as purchase applications stayed flat from a week ago while refinance
applications saw a small decline. Purchase applications were up 3 percent from the same week last year.
Increasing for-sale inventory in some markets has provided prospective buyers more options as we
approach the spring homebuying season.”

Added Kan, “Although overall refinance application activity remained fairly weak, FHA refinance
applications saw an 8 percent increase over the week. Compared to last year, overall refinance
applications were up 45 percent.
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.88 percent from 6.93 percent, with points decreasing to 0.61 from 0.66
(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 3% year-over-year unadjusted. 

Red is a four-week average (blue is weekly).  

Purchase application activity is up about 15% from the lows in late October 2023 and is now 4% below the lowest levels during the housing bust.