Mortgage Applications Rise As Rates Fall For Third Straight Week

Mortgage applications rose 3.1% last week as mortgage rates declined for the third straight week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 1, 2025.

The Market Composite Index, a measure of mortgage loan application volume, increased 3.1% on a seasonally adjusted basis from the prior week and about that same amount, 3%, unadjusted. 

The Refinance Index climbed 5% from the previous week and was 18% higher than a year ago. The seasonally adjusted Purchase Index rose 2% (1% unadjusted) week over week, and was 18% higher than the same week in 2024.

“Mortgage rates moved lower last week, following declining Treasury yields as economic data releases signaled a weakening U.S. economy,” noted MBA Vice President and Deputy Chief Economist Joel Kan. “Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week.” 

He also pointed to increasing for-sale home inventory supporting homebuying, “but on the other hand, recent weakness in the economic environment has deterred some prospective homebuyers.”

Kan also underscored that refinance applications increased to their strongest pace in four weeks after being on a downward trend the prior three weeks. The refinance share of applications increased to nearly 42%, the highest level since April.

Loan Type Share Of Total Applications:

• Refinance share: 41.5% (up from 40.7%)
   
• Adjustable-rate mortgage (ARM) share: 8.5% (up from last week)
   
• FHA share: 18.5% (down from 18.8%)
   
• VA share: 13.3% (up from 12.2%)
   
• USDA share: 0.5% (down from 0.6%)

Average Contract Interest Rates:

• 30-year fixed (conforming ≤ $806,500): 6.77% (down from 6.83%), points down to 0.59 from 0.60
   
• 30-year fixed (jumbo > $806,500): 6.65% (down from 6.74%), points up to 0.59 from 0.51
   
• 30-year fixed (FHA): 6.47% (down from 6.56%), points down to 0.81 from 0.83
   
• 15-year fixed: 6.03% (down from 6.12%), points up to 0.66 from 0.64
   
• 5/1 ARM: 6.06% (down from 6.22%), points down to 0.49 from 0.51

The MBA’s Weekly Mortgage Applications Survey, conducted since 1990, covers closed-end residential mortgage applications originated through retail and consumer direct channels.