HousingWireHousingWire
Mortgage applications decreased 6.6% from last week, according to data from the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending Feb. 14, 2025.
On an unadjusted basis, applications decreased by 4% compared with the previous week.
The refinance share of mortgage activity, which had been strong for the past few weeks, shrank to 38.7% of total applications from 40.2% last week. The refinance index decreased 7% from last week and was 39% higher compared to the same time last year.
The seasonally adjusted purchase index decreased 6% from one week earlier while the unadjusted Purchase Index decreased 1% during the same week. Compared to the same time last year, the unadjusted index was 7% higher.
“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%, 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%.”
By product, the adjustable-rate mortgage (ARM) share of activity decreased to 5.4% of total applications. The FHA share of total applications increased to 16.6% from 16.0% the week prior and the VA share of total applications decreased to 14.2% from 14.6% the week prior.
The USDA share of total applications finally saw movement after several weeks of unchanged levels, increasing marginally to 0.6% from 0.5% the week prior.
While 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) saw interest rates decrease to 6.93% from 6.95%, interest rates for 30-year fixed-rate mortgages with jumbo loan balances increased to 7.03% from 6.96%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.70% from 6.69% and the average contract interest rate for 15-year fixed-rate mortgages decreased to 6.31% from 6.35%.
