Mortgage Applications Continue to Increase

Mortgage applications continue to rise despite growing mortgage rates and high housing costs. According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, mortgage applications rose by 11% in the week ending May 2, 2025. Refinancing applications grew even more. Year-over-year, refinancing applications increased by 51%. The share of FHA and USDA loan applications declined, while VA loan applications increased slightly.

“The economic news last week included a negative reading for first-quarter GDP growth and further signs of contraction in the manufacturing sector, mixed with a solid employment report for April. The net impact on mortgage rates was mostly downward but just back to levels from early April. The 30-year fixed rate declined to 6.84 percent,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Conventional purchase application volume increased 13 percent and was up 9 percent from year-ago levels, a surprisingly strong move given lingering economic uncertainty. Borrowers of conventional loans tend to have larger loan sizes and more apt to be move-up buyers. Government purchase loans were also up 6 percent for the week, led by a 9 percent growth in FHA purchase applications.”

Added Fratantoni, “With rates moving lower, refinance volume increased 11 percent, led by VA refinance applications, which were up 26 percent.” Read more