This week saw another notable jump in home purchase applications with the Mortgage Bankers Association (MBA) reporting increased activity across all loan types as we head into the spring market.
According to MBA’s latest Weekly Mortgage Applications Survey for the week ending March 7, 2025, the Market Composite Index (a measure of mortgage loan application volume) increased 11.2% from the previous week’s 20.4% increase. On an unadjusted basis, the Index increased 12% compared with the previous week.
“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%, the lowest level since October 2024,” said Joel Kan, MBA’s vice president and deputy chief economist. “As a result, applications increased over the week and were up 31% from a year ago. As we enter the spring home-buying season, the purchase index was more than 4% higher than a year ago, and activity was up across all loan categories.”
The Refinance Index also increased again this week, up another 16% from the previous week 37% increase, and was 90% higher than the same week one year ago, MBA reported. The seasonally adjusted Purchase Index increased 7% from one week earlier. The unadjusted Purchase Index increased 8% compared with the previous week and was 4% higher than the same week one year ago.
Kan added, “Government purchase applications experienced an 11 percent increase–helped by the FHA rate dropping to 6.34 percent. Additionally, average loan sizes were higher, with the purchase loan amount hitting $460,800, the highest in the survey dating back to 1990.”
Also notable: The refinance share of mortgage activity increased to 45.6% of total applications from 43.8% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications.
For the full report, click here.
