Mortgage Applications Up As Rates Keep Heading Down

Mortgage application volume jumped last week as interest rates fell to their lowest level in three months, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 4, 2025. The data was adjusted to account for the Fourth of July holiday.

The MBA’s Market Composite Index, which measures overall loan application volume, increased 9.4% on a seasonally adjusted basis from the prior week. However, on an unadjusted basis, applications were down 13%, reflecting the holiday impact.

“Mortgage rates moved lower last week, with the 30-year fixed rate decreasing to 6.77%, its lowest level in three months," said Joel Kan, MBA’s vice president and deputy chief economist. "After adjusting for the July 4th holiday, purchase applications increased to the highest level of activity since February 2023 and remained above year-ago levels."

Purchase And Refinance Activity Ramp Up

MBA’s Purchase Index rose 9% from the previous week on a seasonally adjusted basis. Unadjusted, it fell 13% week-over-week, but remained 25% higher than the same week last year. Meanwhile, the average loan size dropped to $432,600, the lowest since January.

The Refinance Index increased 9% from the week before and is now 56% higher than the same week in 2024. VA refinance applications surged 32%, a notable driver of growth.

“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” Kan noted.

Rate Declines Across Most Mortgage Types

• 30-Year Fixed (Conforming): Down to 6.77% from 6.79%
• 30-Year Jumbo: Fell to 6.69% from 6.78%
• FHA 30-Year Fixed: Decreased to 6.51% from 6.53%
• 15-Year Fixed: Down to 6.04% from 6.06%
• 5/1 ARMs: Increased to 6.01% from 5.99%

Market Share Mix: Slight Shifts Across Loan Types

• Refinance share: 40.0% (down from 40.1%)
• ARM share: 7.7% (down from 8.0%)
• FHA share: 17.9% (down from 18.2%)
• VA share: 13.0% (up from 12.0%)
• USDA share: 0.6% (up from 0.5%)

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