Mortgage Applications Increase in Latest MBA Weekly Survey

by Calculated Risk on 3/12/2025 07:00:00 AM

From the MBA: Mortgage Applications Increase in Latest MBA Weekly Survey

Mortgage applications increased 11.2 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending March 7, 2025.

The Market Composite Index, a measure of mortgage loan application volume, increased 11.2 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12
percent compared with the previous week. The Refinance Index increased 16 percent from the previous
week and was 90 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index increased 7 percent from one week earlier. The unadjusted Purchase Index increased 8 percent
compared with the previous week and was 4 percent higher than the same week one year ago.

“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67
percent, the lowest level since October 2024. As a result, applications increased over the week and were
up 31 percent from a year ago,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “As
we enter the spring homebuying season, the purchase index was more than 4 percent higher than a year
ago, and activity was up across all loan categories. Government purchase applications experienced an 11
percent increase – helped by the FHA rate dropping to 6.34 percent. Additionally, average loan sizes
were higher, with the purchase loan amount hitting $460,800, the highest in the survey dating back to
1990.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($806,500 or less) decreased to 6.67 percent from 6.73 percent, with points increasing to 0.63 from 0.60
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added