Mortgage activity continues to cool, with the latest data from the Mortgage Bankers Association (MBA) showing a third straight week of declining application volume. For the week ending May 30, 2025, mortgage applications dropped 3.9% on a seasonally adjusted basis, according to the MBA’s Weekly Mortgage Applications Survey. This week’s results reflect adjustments for the Memorial Day holiday.
On an unadjusted basis, the drop was even steeper overall mortgage application activity fell by 15% compared to the previous week. Both purchase and refinance applications declined by 4%.
Still, there’s a silver lining: application volume remains higher than it was a year ago. Refinance submissions are up 42% year-over-year, while purchase applications have grown by 18%.
“Rates came down slightly last week, but that wasn’t enough to boost applications in the short term,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Despite the weekly dip, purchase applications are still tracking well ahead of last year’s pace, which reflects improved buyer interest overall.”
Market Snapshot
- 30-year fixed mortgage rates eased to 6.92%, continuing a two-month pattern of hovering between 6.8% and 7%.
- Refinance activity declined across both conventional and government-backed loans.
- The average refinance loan size hit its lowest point since July 2024, suggesting borrowers are holding off for more favorable rate drops.
“Government purchase applications held steady, with FHA activity rising slightly,” Kan added.
Application Breakdown by Segment
- Refinance share of total activity: 35.2% (up from 34.6%)
- Adjustable-rate mortgages (ARMs): 7.1% of applications (down from 7.7%)
- FHA loans: 18.7% (up from 17.9%)
- VA loans: 12.6% (up from 12.3%)
- USDA loans: 0.5% (unchanged)
Weekly Rate Averages (with 80% Loan-to-Value Ratio)
| Loan Type | Rate | Change | Points |
|---|---|---|---|
| 30-year conforming | 6.92% | ↓ from 6.98% | ↓ to 0.66 |
| 30-year jumbo | 6.92% | ↓ from 6.93% | ↓ to 0.60 |
| 30-year FHA | 6.68% | ↑ from 6.66% | ↓ to 0.93 |
| 15-year fixed | 6.25% | ↑ from 6.23% | steady at 0.67 |
| 5/1 ARM | 6.14% | ↓ from 6.22% | ↓ to 0.43 |
The MBA survey, a closely watched indicator of mortgage demand, has been conducted weekly since 1990. It reflects data collected from a wide range of institutions, including mortgage bankers, banks, thrifts, and credit unions.
Bottom Line:
Even as mortgage rates edge lower, many buyers and refinancers remain cautious. Although application activity has declined week over week, strong year-over-year gains suggest underlying interest remains. Borrowers may be holding out for more significant rate drops before making a move. Learn more about finance visit Nadlan Capital Group.