by Calculated Risk on 5/21/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 5.1 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 16, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 5.1 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5
percent compared with the previous week. The Refinance Index decreased 5 percent from the previous
week and was 27 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 5 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent
compared with the previous week and was 13 percent higher than the same week one year ago.“Mortgage rates jumped to their highest level since February last week, with investors concerned about
rising inflation and the impact of increasing deficits and debt,” said Mike Fratantoni, MBA’s SVP and Chief
Economist. “Higher rates, including the 30-year fixed rate increasing to 6.92 percent, led to a slowdown
across the board. However, purchase applications are up 13 percent from one year ago.
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) increased to 6.92 percent from 6.86 percent, with points increasing to 0.69 from 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 13% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index decreased and remained very low.
