Recent figures signal cooling interest despite year-over-year gains
Mortgage applications in the United States experienced a notable decline for the week ending July 25, 2025, reaching their lowest point since May. Data released by the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey on Wednesday revealed a decrease of 3.8% from the previous week on a seasonally adjusted basis.
The Market Composite Index, which measures mortgage loan application volume, also saw a 4% decrease on an unadjusted basis compared to the prior week. Both purchase and refinance activities contributed to the overall downturn.
The Refinance Index decreased by 1% from the previous week, although it remained 30% higher than the same week one year ago.
“Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week. There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective homebuyers’ decisions,” said Joel Kan, MBA’s vice president and deputy chief economist.
The 30-year fixed mortgage rate held steady at 6.83%, down slightly from 6.84% the previous week. Despite the minimal change, Kan noted the rate remains “high enough that there was not much interest in refinancing, pushing the refinance index lower for the third straight week.”
Purchase applications suffered broader declines across loan types. “Purchase applications decreased by almost 6%, as applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions,” Kan said.
The refinance share of total mortgage activity increased to 40.7% from 39.6% the previous week. Adjustable-rate mortgages accounted for 8.3% of applications, up from the prior week.
Among government-backed loans, FHA applications represented 18.8% of total applications, up slightly from 18.7% the previous week. VA loan applications decreased to 12.2% from 12.6%, while USDA loans remained unchanged at 0.6%.
Interest rates showed mixed movement across loan products. Jumbo loans saw rates decrease to 6.74% from 6.75%, while FHA-backed mortgages increased to 6.56% from 6.52%. Fifteen-year fixed-rate mortgages declined to 6.12% from 6.14%. Five-year adjustable-rate mortgages jumped to 6.22% from 6.01%.
Despite weekly declines, mortgage activity remains elevated compared to last year. The Refinance Index sits 30% higher than the same week in 2024, while the Purchase Index shows a 17% year-over-year increase.
The MBA survey covers residential mortgage applications from retail and consumer direct channels, including responses from mortgage bankers, commercial banks, thrifts and credit unions. The association has conducted the weekly survey since 1990.
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