The Mortgage Bankers Association’s (MBA) latest examination of mortgage application volume found that apps increased 10.9% week-over-week, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending August 8, 2025.
The MBA’s Market Composite Index, a measure of mortgage loan application volume, increased 10.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10% compared to the previous week. The Refinance Index increased 23% from the previous week, and was 8% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index increased 1% compared to the previous week, and was 17% higher than the same week one year ago.
“The 30-year fixed mortgage rate declined to 6.67% last week, which spurred the strongest week for refinance activity since April. Borrowers responded favorably, as refinance applications increased 23%, driven mostly by conventional and VA applications,” said Joel Kan, MBA’s VP and Deputy Chief Economist. “Refinances accounted for 46.5% of applications and as seen in other recent refinance bursts, the average loan size grew significantly to $366,400. Borrowers with larger loan sizes continue to be more sensitive to rate movements.”
As Kan noted, the refinance share of mortgage activity increased to 46.5% of total applications, up from 41.5% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.6% of total applications.
“Given the relative attractiveness of ARM rates compared to fixed rate loans, ARM applications increased 25% to their highest level since 2022, and the ARM share of all applications was almost 10%,” added Kan. “However, lower rates were not enough to entice more homebuyers back into the market, as purchase applications were only up around 1% over the week, although still stronger than last year’s pace.”
By loan type, the FHA share of total applications dropped slightly to 18.4% from 18.5% the week prior. The VA share of total applications increased nearly a full percentage point week-over-week to 14.2% from 13.3% the week prior. The USDA share of total applications remained unchanged at 0.5% from the week prior.
Sam Khater, Freddie Mac’s Chief Economist, noted: “The decline in rates increases prospective homebuyers’ purchasing power and our research shows that buyers can save thousands by getting quotes from a few different lenders.”
MBA’s Weekly Mortgage Applications Survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The Survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions.
Bright MLS Chief Economist Lisa Sturtevant commented, “Rates are falling as a September rate cut by the Fed appears more likely. While some buyers on the margins will be getting into the market as rates dip, affordability continues to be a major constraint for other would-be buyers. Mortgage rates are just about 10 basis points lower than they were a year ago, but the median home price nationally hit a new record high in June.”
Monitoring Weekly Trends
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.67% from 6.77%, with points increasing to 0.64 from 0.59 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.70% from 6.65%, with points decreasing to 0.56 from 0.59 (including the origination fee) for 80% LTV loans.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.40% from 6.47%, with points decreasing to 0.77 from 0.81 (including the origination fee) for 80% LTV loans.
- The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.93% from 6.03%, with points decreasing to 0.63 from 0.66 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 5.80% from 6.06%, with points increasing to 0.67 from 0.49 (including the origination fee) for 80% LTV loans.
