by Calculated Risk on 6/04/2025 07:00:00 AM
From the MBA: Mortgage Applications Decrease in Latest MBA Weekly Survey
Mortgage applications decreased 3.9 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending May 30, 2025. This week’s results included an adjustment for the Memorial
Day holiday.The Market Composite Index, a measure of mortgage loan application volume, decreased 3.9 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 15
percent compared with the previous week. The Refinance Index decreased 4 percent from the previous
week and was 42 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 15 percent
compared with the previous week and was 18 percent higher than the same week one year ago.“Most mortgage rates moved lower last week, with the 30-year fixed rate declining to 6.92 percent and
staying in the 6.8 to 7 percent range since April,” said Joel Kan, MBA’s Vice President and Deputy Chief
Economist. “Mortgage applications decreased over the week, but continue to exhibit annual gains, with
purchase applications running 18 percent ahead of last year’s place. Government purchase applications
were little changed over the week driven by a slight increase in FHA purchase applications. Refinance
activity fell across both conventional and government segment and the overall average refinance loan
size was the smallest since July 2024, as potential borrowers hold out for larger rate drops.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.92 percent from 6.98 percent, with points decreasing to 0.66 from 0.67
(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.
