Purchase Activity Gains Momentum As Buyers Step In

Mortgage applications edged down 0.5% last week as mortgage rates ticked higher for the second week in a row, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 22, 2025. But purchase activity is 25% higher than it was last year. 

The Market Composite Index, which tracks overall mortgage loan application volume, declined 0.5% seasonally adjusted from the prior week (2% unadjusted). Refinances fell 4% but were still 19% higher than the same week last year. 

Purchase activity was a bright spot, climbing 2% on a seasonally adjusted basis (down 0.1% unadjusted) and was 25% higher than the same week in 2024.

“Mortgage rates inched higher for the second straight week, with the 30-year fixed-rate up to 6.69%. While this was not a significant increase, it was enough to cause a pullback in refinance applications,” noted MBA Vice President and Deputy Chief Economist Joel Kan. 

“Purchase applications had their strongest week in over a month, up 2%, and the average loan size increased to its highest level in two months at $433,400,” Kan added. “Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.”

Loan Type Share of Total Applications:

• Refinance share: 45.3% (down from 46.1%)
   
• Adjustable-rate mortgage (ARM) share: 8.4% (down from 8.6%)
   
• FHA share: 19.1% (unchanged)
   
• VA share: 13.3% (down from 13.4%)
   
• USDA share: 0.5% (down from 0.6%)
   

Average Contract Interest Rates:

• 30-year fixed (conforming ≤ $806,500): 6.69% (up from 6.68%), points steady at 0.60
   
• 30-year fixed (jumbo > $806,500): 6.67% (up from 6.64%), points down to 0.44 from 0.60
   
• FHA 30-year fixed: 6.35% (down from 6.39%), points up to 0.80 from 0.66
   
• 15-year fixed: 6.03% (up from 5.96%), points up to 0.77 from 0.70
   
• 5/1 ARM: 5.94% (down from 6.01%), points up to 0.68 from 0.63
   

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