MBA data points to shifts in refinancing and purchasing trends
Mortgage applications fell slightly last week as interest rates inched higher for the second consecutive week, according to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey.
For the week ending August 22, 2025, the Market Composite Index, a measure of mortgage loan application volume, declined 0.5% on a seasonally adjusted basis from the prior week. On an unadjusted basis, applications decreased 2%.
The Refinance Index fell 4% from the previous week, though it remained 19% higher than the same week in 2024. The seasonally adjusted Purchase Index rose 2%, marking its strongest performance in more than a month, while the unadjusted Purchase Index slipped 0.1%. Compared with a year earlier, purchase applications were up 25%.
“Mortgage rates inched higher for the second straight week, with the 30-year fixed-rate up to 6.69%,” said Joel Kan, MBA’s vice president and deputy chief economist. “While this was not a significant increase, it was enough to cause a pullback in refinance applications.
Purchase applications had their strongest week in over a month, up 2%, and the average loan size increased to its highest level in two months at $433,400. Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.”
The refinance share of mortgage activity slipped to 45.3% of total applications, down from 46.1% the previous week. Adjustable-rate mortgages (ARMs) made up 8.4% of activity, also down from a week earlier.
Government-backed loans showed mixed results. The Federal Housing Administration (FHA) share held steady at 19.1%, while the Department of Veterans Affairs (VA) share edged down to 13.3% from 13.4%. The US Department of Agriculture (USDA) share slipped to 0.5% from 0.6%.
Interest rates showed modest shifts across loan types. The average contract rate for 30-year fixed-rate mortgages with conforming balances rose to 6.69%, while jumbo loans increased to 6.67%. FHA-backed 30-year mortgages eased to 6.35%, and 15-year fixed mortgages climbed to 6.03%. The rate for 5/1 ARMs decreased to 5.94%.
MBA’s weekly survey, which has been conducted since 1990, covers US closed-end residential mortgage applications from mortgage bankers, commercial banks, thrifts, and credit unions.
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