Mortgage applications continued their fall for the second consecutive week, as mortgage rates remain elevated, hovering just under 7%.
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Feb. 21, 2025, the Market Composite Index (a measure of mortgage loan application volume) decreased 1.2% from one week earlier. On an unadjusted basis, the Index decreased 4%.
Joel Kan—MBA’s vice president and deputy chief economist—pointed to the latest reports on consumer sentiment seeing a decrease as a reason for the data.
“Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market. This pushed mortgage rates lower, with the 30-year fixed rate decreasing to 6.88%, the lowest rate since mid-December,” said Kan.
The Refinance Index decreased 4% from the previous week and was 45% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 0% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 3% higher than the same week one year ago.
“Purchase applications were up 3% from the same week last year. Increasing for-sale inventory in some markets has provided prospective buyers more options as we approach the spring homebuying season,” added Kan.
The refinance share of mortgage activity increased to 38.9% of total applications from 38.7% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.4% of total applications.
The FHA share of total applications increased to 17.4% from 16.6% the week prior. The VA share of total applications decreased to 13.4% from 14.2% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior.
For the full report, click here.
