Mortgage applications surge 10.9% as refinancing activity jumps

Published 13/08/2025, 12:30
Mortgage applications surge 10.9% as refinancing activity jumps

Investing.com -- Mortgage applications increased 10.9% for the week ending August 8, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The Market Composite Index, which measures mortgage loan application volume, rose 10.9% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index increased 10%.

Refinancing activity showed the strongest growth, with the Refinance Index jumping 23% from the previous week and standing 8% higher than the same week in 2024. Purchase applications saw more modest growth, with the seasonally adjusted Purchase Index rising just 1% week-over-week, though it remained 17% above the level seen during the same period last year.

"The 30-year fixed mortgage rate declined to 6.67% last week, which spurred the strongest week for refinance activity since April. Borrowers responded favorably, as refinance applications increased 23%, driven mostly by conventional and VA applications," said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

Refinances accounted for 46.5% of total applications, up from 41.5% the previous week. The average loan size for refinances grew significantly to $366,400, with Kan noting that "borrowers with larger loan sizes continue to be more sensitive to rate movements."

Adjustable-rate mortgage (ARM) applications increased 25% to their highest level since 2022, with ARMs representing 9.6% of total applications. Kan attributed this to "the relative attractiveness of ARM rates compared to fixed rate loans."

The FHA share of total applications decreased slightly to 18.4% from 18.5%, while the VA share increased to 14.2% from 13.3%. The USDA share remained unchanged at 0.5%.

Interest rates showed mixed movements across different mortgage types. The average rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.67% from 6.77%, while jumbo loan rates increased to 6.70% from 6.65%. FHA-backed 30-year fixed-rate mortgages saw rates decrease to 6.40% from 6.47%, and 15-year fixed-rate mortgages dropped to 5.93% from 6.03%. The 5/1 ARM rate decreased significantly to 5.80% from 6.06%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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