Refinance surge boosts mortgage application activity

Mortgage applications increased 4.8% from one week earlier, according to the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending December 5, 2025.

The association disclosed that the results included an adjustment for the Thanksgiving holiday. On an unadjusted basis, the Index increased 49% compared with the previous week.

The refinance index increased 14% from the previous week and was 88% higher than the same week one year ago. The refinance share of mortgage activity increased to 58.2% of total applications from 53.0% the previous week.

“Compared to the prior week’s data, which included an adjustment for the Thanksgiving holiday, mortgage application activity increased last week, driven by an uptick in refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist.

“Conventional refinance applications were up almost 8% and government refinances were up 24% as the FHA rate dipped to its lowest level since September 2024. Conventional purchase applications were down for the week, but there was a 5% increase in FHA purchase applications as prospective homebuyers continue to seek lower downpayment loans. Overall, purchase applications continued to run ahead of 2024’s pace as broader housing inventory and affordability conditions improve gradually.”

The seasonally adjusted purchase index decreased 2%, while the unadjusted purchase index increased 32% compared with the previous week and was 19% higher than the same week one year ago.

By product, the adjustable-rate mortgage (ARM) share of activity decreased to 7.0% of total applications. The Federal Housing Administration (FHA) share of total applications increased to 20.2% from 18.3% and the U.S. Department of Veterans Affairs (VA) share of total applications increased to 16.4% from 15.0%. The U.S. Department of Agriculture (USDA) share of total applications, meanwhile, remained unchanged at 0.3%.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.33% from 6.32% while rates for 30-year fixed-rate mortgages with jumbo loan balances increased to 6.46% from 6.40%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.08% from 6.12% and the average contract interest rate for 15-year fixed-rate mortgages decreased to 5.71% from 5.73%. The average contract interest rate for 5/1 ARMs increased to 5.51% from 5.40%.