WASHINGTON-- Mortgage applications increased 7.1% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 24.
The Market Composite Index, a measure of mortgage loan application volume, increased 7.1% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 7% compared with the previous week. The Refinance Index increased 9% from the previous week and was 111% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 5% from one week earlier. The unadjusted Purchase Index increased 4% compared with the previous week and was 20% higher than the same week one year ago.
“Mortgage rates decreased for the fourth consecutive week, with the 30-year fixed rate down to 6.30%, its lowest level since September 2024. This recent decline in rates spurred the second consecutive week of increased refinance activity, driven mainly by conventional refinance applications,” said Joel Kan, MBA’s vice president and deputy chief economist. “The ARM share of applications, which had been trending higher, dipped below 10% last week, as lower rates prompted more borrowers to choose fixed-rate loans. Additionally, the average loan size of a refinance application remained elevated at $393,900, as borrowers with larger loan sizes continue to be sensitive to rate movements. Purchase applications increased compared to a holiday-shortened week across most loan types. However, USDA applications fell more than 26%, impacted by the ongoing government shutdown.”
The refinance share of mortgage activity increased to 57.1% of total applications from 55.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.9% of total applications.
FHA Share
The FHA share of total applications decreased to 20.5% from 21.8% the week prior. The VA share of total applications decreased to 13.4% from 13.5% the week prior. The USDA share of total applications decreased to 0.2% from 0.3% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.30% from 6.37%, with points decreasing to 0.58 from 0.59 (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) decreased to 6.38% from 6.39%, with points decreasing to 0.34 from 0.37 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week, MBA said.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 6.12%, with points increasing to 0.73 from 0.72 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.67% from 5.74%, with points decreasing to 0.61 from 0.67 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 5.66% from 5.55%, with points decreasing to 0.51 from 0.62 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.