RESIDENTIAL REAL ESTATE NEWS
According to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey for the week ending March 7, 2025, U.S. mortgage applications saw an 11.2% increase compared to the previous week.
The Market Composite Index, which measures mortgage loan application volume, rose 11.2% on a seasonally adjusted basis and 12% on an unadjusted basis from the prior week. The Refinance Index climbed 16% week-over-week and was 90% higher than the same period last year. Meanwhile, the seasonally adjusted Purchase Index increased by 7%, with the unadjusted Purchase Index up 8% from the previous week and 4% higher than the same week in 2024.
“Mortgage rates declined for the sixth straight week, with the 30-year fixed rate dropping to 6.67%, its lowest level since October 2024. This drove an increase in applications, which were up 31% year-over-year,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “As we enter the spring homebuying season, purchase activity was up across all loan categories, with government-backed purchase applications rising 11%, supported by the FHA rate decline to 6.34%. Additionally, the average purchase loan size hit $460,800–the highest recorded in the survey dating back to 1990.”
Refinance applications accounted for 45.6% of total activity, up from 43.8% the prior week. The share of adjustable-rate mortgage (ARM) applications rose to 7.2%.
- The FHA share of total applications declined to 16.1% from 16.7% the previous week.
- The VA share of applications increased to 15.9% from 14.6%.
- The USDA share dipped to 0.4% from 0.5%.
U.S. mortgage rates continued their downward trend:
- 30-year fixed-rate mortgages (conforming loans ≤ $806,500): Dropped to 6.67% from 6.73%, with points rising to 0.63 from 0.60.
- 30-year fixed-rate jumbo loans (> $806,500): Fell to 6.68% from 6.83%, with points increasing to 0.48 from 0.47.
- 30-year FHA-backed mortgages: Declined to 6.34% from 6.42%, with points decreasing to 0.74 from 0.79.
- 15-year fixed-rate mortgages: Dropped to 6.04% from 6.12%, with points rising to 0.68 from 0.64.
- 5/1 ARMs: Decreased to 5.81% from 5.85%, though points climbed to 0.72 from 0.41.
The overall effective rate declined for most mortgage products, except for ARMs, where it slightly increased.