WASHINGTON—Mortgage applications increased 11.0% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 2, 2025.
The Market Composite Index, a measure of mortgage loan application volume, increased 11.0% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 12% compared with the previous week.
The Refinance Index increased 11% from the previous week and was 51% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 11% from one week earlier. The unadjusted Purchase Index increased 12% compared with the previous week and was 13% higher than the same week one year ago.
“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84%,” said Mike Fratantoni, MBA’s SVP and chief economist. “Conventional purchase application volume increased 13% and was up 9% from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6% for the week, led by a 9% growth in FHA purchase applications.”
“With rates moving lower, refinance volume increased 11%, led by VA refinance applications, which were up 26%,” added Fratantoni.
The refinance share of mortgage activity decreased to 37.1% of total applications from 37.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.3% of total applications.
FHA Share
The FHA share of total applications decreased to 16.4% from 16.7% the week prior. The VA share of total applications increased to 13.3% from 13.1% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior MBA said.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.84% from 6.89%, with points increasing to 0.68 from 0.67 (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 6.86% from 6.88%, with points decreasing to 0.46 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.56% from 6.61%, with points increasing to 0.87 from 0.86 (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 remained unchanged at 6.17%, with points decreasing to 0.65 from 0.76 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week, MBA said.
The average contract interest rate for 5/1 ARMs increased to 5.97% from 5.89%, with points decreasing to 0.31 from 0.63 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.