FHA refinance applications rise 12% amid mixed mortgage rates

Mortgage applications decreased 1.8% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending October 10, 2025.

On an unadjusted basis, the index decreased 2% compared with the previous week.

Despite the overall increase, Federal Housing Administration (FHA) applications saw a strong week, with FHA refinance applications ticking up 12%.

“Mortgage rate movements were mixed last week, with the 30-year fixed rate decreasing slightly to 6.42%. Mortgage applications were lower than the week before, as conventional and VA applications saw declines,” said Joel Kan, MBA’s vice president and deputy chief economist.

“FHA applications saw a stronger week, and FHA refinance applications in particular increased 12% as the FHA rate stayed more than 10 basis points lower than the conventional fixed rate. Purchase applications declined for the third consecutive week but remained 20% ahead of last year’s pace as improving inventory conditions in certain markets continue to maintain homebuyer interest,” Kan noted.

The refinance share of mortgage activity increased to 53.6% of total applications from 53.3% the previous week. The refinance index, however, decreased 1% from the previous week and was 59% higher than the same week one year ago.

The seasonally adjusted purchase index decreased 3% from one week earlier. The unadjusted purchase index decreased 2% compared with the previous week and was 20% higher than the same week one year ago.

By product, the adjustable-rate mortgage (ARM) share of activity decreased to 9.3% of total applications. The FHA share of total applications increased to 20.5% from 18.5% the week prior, while the U.S. Department of Veterans Affairs (VA) share of total applications decreased to 14.9% from 16.3%. The U.S. Department of Agriculture (USDA) share of total applications remained unchanged at 0.4%

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.42% from 6.43% and rates for 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.47% from 6.60%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.19%. The average rate for 15-year fixed-rate mortgages remained unchanged, too, at 5.77%.

The only average contract interest rate that saw an increase was for 5/1 ARMs, which bumped up to 5.63% from 5.49%.