by Calculated Risk on 7/02/2025 07:00:00 AM
From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey
Mortgage applications increased 2.7 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending June 27, 2025. Last week’s results included an adjustment for the Juneteenth
holiday.The Market Composite Index, a measure of mortgage loan application volume, increased 2.7 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 13
percent compared with the previous week. The Refinance Index increased 7 percent from the previous
week and was 40 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 0.1 percent from one week earlier. The unadjusted Purchase Index increased 10 percent
compared with the previous week and was 16 percent higher than the same week one year ago.“Mortgage rates were lower across all loan types last week, with the 30-year fixed rate declining to its
lowest level since April at 6.79 percent. This decline prompted an increase in refinance applications,
driven by a 10 percent increase in conventional applications and a 22 percent increase in VA refinance
applications,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “As borrowers with
larger loans tend to be more sensitive to rate changes, the average loan size for a refinance application
increased to $313,700 after averaging less than $300,000 for the past six weeks. Purchase activity was
essentially flat over the week, as overall uncertainty continues to hold homebuyers out of the market.
However, purchase activity still remains 16 percent higher than last year’s pace.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.79 percent from 6.88 percent, with points decreasing to 0.62 from 0.63
(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 16% year-over-year unadjusted.
Red is a four-week average (blue is weekly).
The refinance index increased but remained very low.
