Mortgage applications decreased 6.6 percent from one
week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage
Applications Survey for the week ending February 14, 2025.The Market Composite Index, a measure of mortgage loan application volume, decreased 6.6 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4
percent compared with the previous week. The Refinance Index decreased 7 percent from the previous
week and was 39 percent higher than the same week one year ago. The seasonally adjusted Purchase
Index decreased 6 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent
compared with the previous week and was 7 percent higher than the same week one year ago.“Mortgage rates decreased on average over the week, as markets brushed off unexpectedly strong
inflation data. Despite mortgage rates declining, with the 30-year fixed mortgage rate dropping to 6.93
percent, mortgage applications decreased to their slowest pace since the beginning of the year,” said Joel
Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications were down for the week,
as buyers remained on the fence, although loosening inventory may help support activity in the coming
months. Refinance applications had been rising in previous weeks but dipped as rates remained close to
7 percent.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) decreased to 6.93 percent from 6.95 percent, with points increasing to 0.66 from 0.64
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is up 7% year-over-year unadjusted.
