Mortgage applications slip overall as refinances cool, but loan size hits two-month high
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.
Joel Kan
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.”
Get the NMP Daily
Essential stories, every weekday.
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.
Proposition 37 could open new purchase lending opportunities, but financing costs and borrower qualification will determine its reach
California voters have approved a $25 billion homebuyer financing initiative that could create new purchase mortgage opportunities for lenders and brokers, particularly those working with homebuilders.Proposition 37, which passed with more than 60% of the vote in the Nov. 3 ...
As investor purchases decline, DSCR loans capture a growing share of Non-QM lending, creating opportunities for brokers who understand the differences between lender programs
Real estate investors are buying fewer homes than they did a year ago, yet debt service coverage ratio (DSCR) lending continues to gain ground in the market. A big part of the reason is that DSCR loans are purpose-built for property investors. Agency loans qualify borrowers ...
