Mortgage demand continues to outpace 2024

Mortgage applications increased less than a full percentage point (0.8%) from the prior week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending July 18, 2025.

On an unadjusted basis, the index increased 1% compared with the previous week.

The refinance index decreased 3% from the previous week, but remained 22% higher than the same week one year ago. The refinance share of mortgage activity decreased to 39.6% of total applications from 41.1% the previous week.

The seasonally adjusted purchase index increased 3% from one week earlier. The unadjusted purchase index increased 4% compared with the previous week and was 22% higher than the same week one year ago.

“The 30-year fixed mortgage rate edged higher last week to its highest level in four weeks at 6.84%, while rates for other loan types were mixed. Purchase applications finished the week higher, driven by conventional purchase loans, and continue to run ahead of last year’s pace,” said Joel Kan, MBA’s vice president and deputy chief economist.

He continued, “After reaching $460,000 in March 2025, the purchase loan amount has fallen to its lowest level since January 2025 to $426,700. With the 30-year fixed rate still too high to benefit many borrowers, refinance applications were down almost 3% for the week.”

By product, the adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications. The FHA share, meanwhile, decreased to 18.7% from 19.0% the week prior. The VA share of total applications remained unchanged at 12.6% from the week prior, and the USDA share increased to 0.6% from 0.5%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.84% from 6.82%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances remained unchanged at 6.75%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.52%. The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.14% from 6.16%, and 5/1 ARMs also saw a decrease from last week’s 6.08% to 6.01%.