WASHINGTON— Mortgage applications decreased 4.7% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 3, 2025.
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.7% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5% compared with the previous week. The Refinance Index decreased 8% from the previous week and was 18% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index decreased 1% compared with the previous week and was 14% higher than the same week one year ago.
“With mortgage rates on fixed-rate loans little changed last week, refinance application activity generally declined, with the exception of a modest increase for FHA refinance applications,” said Mike Fratantoni, MBA’s SVP and chief economist “Refinance volume remains somewhat elevated relative to levels of a month ago. Purchase activity declined by about 1% for the week but continues to show moderate growth on an annual basis, and stronger growth for FHA loans, favored by first-time homebuyers.
“The ARM share increased to 9.5% last week from 8.4% the prior week,” continued Fratantoni. “Our survey shows 5/1 ARM rates are averaging almost a percentage point below 30-year fixed rates, and this differential is leading more purchase and refinance applicants to consider ARMs.”
The refinance share of mortgage activity decreased to 53.3% of total applications from 55.0% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.5% of total applications.
FHA Share
The FHA share of total applications increased to 18.5% from 16.8% the week prior. The VA share of total applications increased to 16.3% from 16.2% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.43% from 6.46%, with points decreasing to 0.60 from 0.61 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.60% from 6.54%, with points increasing to 0.44 from 0.40 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.19% from 6.24%, with points decreasing to 0.73 from 0.76 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.77% from 5.76%, with points increasing to 0.79 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 5.49% from 5.74%, with points increasing to 0.74 from 0.46 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.