Mortgage applications fall to their lowest level since May

Mortgage applications decreased 3.8% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending July 25, 2025. The decrease represented the applications’ lowest level since May.

On an unadjusted basis, the index decreased 4% compared with the previous week.

“Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week. There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, MBA’s vice president and deputy chief economist. “The 30-year fixed rate was little changed at 6.83%, but high enough that there was not much interest in refinancing, pushing the refinance index lower for the third straight week. Purchase applications decreased by almost 6%, as applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions.”

The refinance index decreased by 1% from the previous week and was 30% higher than the same week one year ago. The refinance share of mortgage activity, however, increased to 40.7% of total applications from last week’s 39.6%.

The seasonally adjusted purchase index decreased 6% from the previous week. The unadjusted purchase index decreased 6% compared with the previous week and was 17% higher than the same week one year ago.

By product, the adjustable-rate mortgage (ARM) share of activity increased to 8.3% of total applications. The FHA share of total applications increased to 18.8% from 18.7% the week prior. The VA share of total applications decreased to 12.2% from 12.6% the week prior, and the USDA share of total applications remained unchanged at 0.6%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.83% from 6.84% and 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.74% from 6.75%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.56% from 6.52%. The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.12% from 6.14%, and 5/1 ARMs increased to 6.22% from 6.01%.