Mortgage application activity declined last week as interest rates climbed to their highest levels since February, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week that ended May 16, 2025.
The MBA’s Market Composite Index — a measure of total mortgage application volume — fell 5.1% on a seasonally adjusted basis from the week before. On an unadjusted basis, the index dropped 5%.
Refinance applications also declined 5% week over week, though they remain 27% higher than the same time last year. Meanwhile, purchase activity dipped 5% on a seasonally adjusted basis and 6% unadjusted. Even so, the unadjusted Purchase Index is up 13% from the same week one year ago.
“Mortgage rates jumped to their highest level since February last week, with investors concerned about rising inflation and the impact of increasing deficits and debt,” stated Mike Fratantoni, SVP and chief economist at MBA. “Higher rates, including the 30-year fixed rate increasing to 6.92%, led to a slowdown across the board.”
“However,” he noted, “purchase applications are up 13% from one year ago.”
Refinances Edge Up, ARMs Decline
The refinance share of mortgage activity inched up to 36.6% from 36.4% the previous week. Adjustable-rate mortgage (ARM) applications, however, dropped slightly to 7.1% of total volume.
FHA loans accounted for 17.9% of total applications, up from 17.4% the week before. VA loans’ share fell to 12.6% from 13.4%, while USDA applications held steady at 0.5%.
Rates Climb Across Most Loan Types
Mortgage rates increased across most loan types last week:
- The 30-year fixed (conforming) rose to 6.92% from 6.86%; points increased to 0.69 from 0.68.
- The 30-year fixed (jumbo) increased to 6.94% from 6.85%; points surged to 0.72 from 0.49.
- The 30-year FHA-backed edged up slightly to 6.60% from 6.59%; points rose to 0.96 from 0.89.
- The 15-year fixed climbed to 6.21% from 6.12%; points increased to 0.72 from 0.59.
- 5/1 ARMs rose to 6.16% from 6.09%; points dropped to 0.36 from 0.74.
The effective rate increased week-over-week for all fixed-rate loans, while it decreased slightly for 5/1 ARMs, according to MBA’s data.
MBA’s weekly survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted since 1990. It includes responses from mortgage bankers, commercial banks, credit unions, and thrifts.
