You can see a home for sale in Austin, Texas on April 24, 2025.
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Mortgage rates barely moved last week, but demand has increased from home buyers and those considering refinancing their current mortgage.
The total mortgage application volume rose 12.5% last week compared to last week, according to the Mortgage Bankers Association’s Seasonally Adjusted Index. Additional adjustments have been made for Memorial Day holidays. The weekly movements may seem big, but historically the volume is still very low.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances rose from 6.92% to 6.93%, below $806,500, and points for a 20% down payment loan fell from 0.66 to 0.64. The rate is currently 9 basis points lower than the same week as a year ago.
However, the average fees for 15-year fixed loans and Federal Housing Administration loans have dropped slightly.
“After leaving Memorial Day holidays, mortgage applications have increased to the highest level in over a month,” said Joel Kang, vice president and vice-chief economist at MBA, in the release. “Finance rates saw some movements in the week, creating additional opportunities for borrowers.”
Refinance applications rose 16% a week, 28% higher than the same week a year ago.
Mortgage applications to buy homes rose 10% a week, 20% higher than the same week a year ago. Much of this may be due to an increase in the list available. According to Realtor.com, supply is about 31% higher than last year’s time. Home prices are also beginning to ease.
“Despite the continued uncertainty surrounding the economy, home buyers appear to be taking advantage of loosening their home inventory in certain markets,” Kang added.
Prices have not moved at all this week, but new monthly data on inflation is expected to be released on Wednesday, with trade talks with China still underway. Although either or both may be sufficient to move through the bond market, fees have been in a very narrow range over the past few months.
Modification: Applications to buy a mortgage home were 20% higher than the same week a year ago. Previous versions misunderstood periods.
