Mortgage applications rebounded from last week’s low and increased 3.1% from one week earlier, driven by the third straight weekly decline in mortgage rates.
That’s according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Aug. 1, 2025. On an unadjusted basis, the index increased 3% compared to last week.
The refinance index increased 5% from the previous week and was 18% higher than the same week one year ago. The refinance share of mortgage activity increased to 41.5% of total applications from 40.7% last week.
“Refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks. The refinance share increased to almost 42%, its highest level since April,” said Joel Kan, MBA’s vice president and deputy chief economist.
Continued Kan, “Mortgage rates moved lower last week, following declining Treasury yields as economic data releases signaled a weakening U.S. economy. As a result, the 30-year fixed rate decreased for the third straight week to 6.77%. Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week. Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory of homes has been supporting homebuying, but on the other hand, recent weakness in the economic environment has deterred some prospective homebuyers.”
The seasonally adjusted purchase index increased 2% from one week earlier. The unadjusted purchase index increased 1% compared with the previous week and was 18% higher than the same week one year ago.
By product, the adjustable-rate mortgage (ARM) share of activity increased to 8.5% of total applications. The FHA share of total applications decreased slightly to 18.5% from 18.8% the week prior, while the VA share of total applications increased to 13.3% from 12.2%. The USDA share of total applications decreased to 0.5% from 0.6%.
Average contract interest rates decreased across the board. Interest rates for jumbo loans decreased to 6.65% from 6.74% and 30-year fixed-rate mortgages backed by the FHA decreased to 6.47% from 6.56%.
The average interest rate for 15-year fixed-rate mortgages decreased to 6.03% from 6.12% and 5/1 ARMs’ average rate decreased to 6.06% from 6.22%.
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By: Sarah Wolak
Title: Mortgage, refinance applications rebound in latest MBA data
Sourced From: www.housingwire.com/articles/mortgage-refinance-applications-rebound-in-latest-mba-data/
Published Date: Wed, 06 Aug 2025 13:09:46 +0000
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