Mortgage Applications Climb As Rates Continue To Decline

Mortgage applications increased 11.2% on a seasonally adjusted basis from last week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending March 7, 2025.

On an unadjusted basis, the index increased 12% compared to last week.

The refinance index saw a 16% uptick from the previous week and was 90% higher than the same week one year ago, largely driven by a dip in the 30-year fixed rate observed by the MBA.

The seasonally adjusted purchase index increased 7% last week while the unadjusted purchase index increased 8% compared with the previous week and was 4% 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%, the lowest level since October 2024. As a result, applications increased over the week and were up 31% 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% higher than a year ago, and activity was up across all loan categories. Government purchase applications experienced an 11% increase – helped by the FHA rate dropping to 6.34%. Additionally, average loan sizes were higher, with the purchase loan amount hitting $460,800, the highest in the survey dating back to 1990.”

The refinance share of mortgage activity increased to 45.6% of total applications from 43.8% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications.

By product, the FHA share of total applications decreased to 16.1% from 16.7% the week prior and the VA share of total applications increased to 15.9% from 14.6% during the same period. The USDA share of total applications decreased to 0.4% from 0.5% the week prior after remaining at 0.5% for several weeks.

While the average contract interest rate for 30-year fixed-rate mortgages decreased to 6.67%, every other loan type saw rates decrease.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances also saw a decrease to 6.68% from 6.83%.

The average contract interest rate for 30-year fixed-rate FHA mortgages decreased to 6.34%
percent from 6.42%, and the average contract interest rate for 15-year fixed-rate mortgages decreased to 6.04% from 6.12%.

The average contract interest rate for 5/1 ARMs decreased to 5.81% from 5.85%.