Mortgage application volume saw a modest increase last week, buoyed by a notable rise in home purchase activity, according to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey.
For the week that ended May 9, 2025, total mortgage applications rose 1.1% on a seasonally adjusted basis compared to the prior week. Unadjusted, applications increased 1%.
While refinance activity slipped slightly — down 0.4% from the previous week — that’s still 44% higher than this same time last year. Meanwhile, purchase applications climbed 2.3% from the prior week and were up a substantial 18% year-over-year.
“Last week saw steadier mortgage rates, as the [Federal Reserve Board’s Federal Open Market Committee] meeting played as predicted,” stated Mike Fratantoni, MBA senior vice president and chief economist, in a release. “Despite economic uncertainty,” he noted, “the increase in home inventory means there are additional properties to buy, unlike the last two years.”
Summing things up, “rising inventories have supported a boost in homebuyer demand in recent weeks, with purchase applications up 2% last week and an impressive 18% compared to last year," commented MBA President and CEO Bob Broeksmit. The organization expects activity will pick up even more if mortgage rates drop, he noted.
Meanwhile, government-backed loan applications saw particular growth, with government purchase applications up nearly 5% for the week and 40% from the same period last year. FHA loans increased to 17.4% of total applications, up from 16.4%, while VA loans inched up to 13.4% from 13.3% the week before. USDA loans held steady at 0.5%.
Refinances made up a smaller slice of overall activity, falling to 36.4% of total applications, down from 37.1% the previous week. Adjustable-rate mortgage (ARM) applications also edged down, accounting for 7.4% of the total, compared to 7.5% the week before.
Mortgage interest rates mostly saw only small changes:
- 30-year fixed (conforming loans up to $806,500): rose to 6.86% from 6.84%
- 30-year jumbo: dipped to 6.85% from 6.86%
- FHA 30-year fixed: rose to 6.59% from 6.56%
- 15-year fixed: fell to 6.12% from 6.17%
- 5/1 ARM: climbed to 6.09% from 5.97%
The MBA’s survey dates back to 1990 and includes data from a range of mortgage lenders, including retail and consumer-direct channels.
