Mortgage Applications Decreased in Latest MBA Weekly Survey

WASHINGTON, D.C. (October 22, 2025) - Mortgage applications decreased 0.3 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 17, 2025.

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 0.2 percent compared with the previous week. The Refinance Index increased 4 percent from the previous week and was 81 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 20 percent higher than the same week one year ago.

"The lowest mortgage rates in a month spurred an increase in refinance activity, including another pickup in ARM applications. The 30-year fixed rate decreased to 6.37 percent and all other loan types also decreased," said Joel Kan, MBA's Vice President and Deputy Chief Economist. "The refinance index increased 4 percent, driven by a 6 percent increase in conventional refinances and a 12 percent increase in FHA refinance applications, as borrowers remain attentive to these opportunities to lower their monthly mortgage payment. VA refinances bucked the trend and were down 12 percent."

Added Kan, "ARM applications increased 16 percent over the week, which pushed the ARM share to 11 percent, with the ARM rate more than 80 basis points lower than the 30-year fixed rate. Purchase applications were down over the week but remained 20 percent higher than a year ago."

The refinance share of mortgage activity increased to 55.9 percent of total applications from 53.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 10.8 percent of total applications.

The FHA share of total applications increased to 21.8 percent from 20.5 percent the week prior. The VA share of total applications decreased to 13.5 percent from 14.9 percent the week prior. The USDA share of total applications decreased to 0.3 percent from 0.4 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.37 percent from 6.42 percent, with points decreasing to 0.59 from 0.61 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.39 percent from 6.47 percent, with points decreasing to 0.37 from 0.53 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.12 percent from 6.19 percent, with points decreasing to 0.72 from 0.76 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.74 percent from 5.77 percent, with points decreasing to 0.67 from 0.70 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.55 percent from 5.63 percent, with points increasing to 0.62 from 0.59 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

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The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.