Mortgage Applications Inch Back Up As Purchase Activity Outpaces Last Year

Mortgage application activity rose modestly last week, with home purchase demand continuing to outpace year-ago levels despite higher interest rates, according to the Mortgage Bankers Association’s (MBA) latest Weekly Mortgage Applications Survey.

Overall applications ticked up 0.8% on a seasonally adjusted basis for the week ending July 18. Unadjusted, activity was up 1% from the prior week.

Purchase applications led the gain, rising 3% seasonally adjusted and 4% unadjusted. Year over year, purchase volume was 22% higher — a strong signal of persistent buyer interest.

“Purchase applications finished the week higher, driven by conventional purchase loans, and continue to run ahead of last year’s pace,” said MBA Vice President and Deputy Chief Economist Joel Kan.

Kan added that the average purchase loan size has dropped noticeably: “After reaching $460,000 in March 2025, the purchase loan amount has fallen to its lowest level since January 2025 to $426,700.”

Refinance activity, meanwhile, declined 3% for the week, even as that index remains 22% higher than the same time last year. MBA cited still-elevated rates as a continued headwind for most would-be refi borrowers.

Key Metrics:

• Market Composite Index: +0.8% (seasonally adjusted)
   
• Purchase Index: +3% (seasonally adjusted); +22% YoY
   
• Refinance Index: -3% weekly; +22% YoY
   
• Refi Share of Activity: 39.6% (down from 41.1%)
   
• Adjustable-Rate Mortgage (ARM) Share: 7.2% (up from 6.9%)
   

Rates Snapshot:

• 30-year fixed (conforming): 6.84% (highest in 4 weeks; up from 6.82%)
   
• 30-year fixed (jumbo): 6.75% (unchanged)
   
• 30-year fixed (FHA): 6.52% (unchanged)
   
• 15-year fixed: 6.14% (down slightly from 6.16%)
   
• 5/1 ARM: 6.01% (down from 6.08%)
   

Despite mixed movement in rates across loan types, the average rate for a 30-year fixed-rate mortgage increased slightly, hitting its highest mark in nearly a month.

“With the 30-year fixed rate still too high to benefit many borrowers, refinance applications were down almost 3% for the week,” Kan noted.

Loan type shares were relatively stable. FHA applications made up 18.7% of total volume (down slightly), VA loans held steady at 12.6%, and USDA loans ticked up to 0.6%.

The MBA’s survey, which covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels, has been conducted weekly since 1990.