WASHINGTON–Mortgage applications declined for the week ending May 23, 2025, as interest rates climbed to their highest level since January, according to new data from the Mortgage Bankers Association (MBA).
The MBA said its latest Weekly Mortgage Applications Survey showed overall application volume falling 1.2% on a seasonally adjusted basis compared to the previous week.
Even though refinance activity was most affected, sliding 7%, the MBA said refinance applications remained 37% higher than the same time a year ago.
Rate Increase
The average rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.98%, up from 6.92% the prior week, according to the organization.
“Mortgage rates reached their highest level since January, following higher Treasury yields,” Joel Kan, vice president and deputy chief economist at MBA, said in a statement. “As a result of these higher rates, applications activity decreased, driven by a 7% decline in refinance applications.”
The Data Points
According to the MBA data:
- Conventional refinances were down 6%, while VA refis dropped by 16%.
- Purchase applications rose 3% on a seasonally adjusted basis, which is 18% above the same time in 2024. In his statement, Kan credited the ongoing strength in purchase activity to improving housing inventory in several markets
- Among loan types, the refinance share of total mortgage activity dropped to 34.6% from 36.6% the week prior, while the share of adjustable-rate mortgages increased to 7.5%.
- The shares of FHA and USDA loan applications remained flat at 17.9% and 0.5%, respectively.
- VA loan activity dipped slightly, falling to 12.3% from 12.6%.
