Surge in Mortgage Applications Indicates Spring Home-Buying Momentum
This week, the Mortgage Bankers Association (MBA) has reported an encouraging increase in home purchase applications, signaling a robust start to the spring real estate market.
Key Statistics from the MBA Report
According to the MBA’s Weekly Mortgage Applications Survey for the week ending March 7, 2025, the Market Composite Index, which evaluates the volume of mortgage applications, experienced a notable rise of 11.2%. This follows a prior increase of 20.4% the week before. On an unadjusted basis, the Index showed a 12% jump compared to the preceding week.
Declining Mortgage Rates Encourage Buyer Activity
“Mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%, the lowest level since October 2024,” stated Joel Kan, the vice president and deputy chief economist at MBA. This decline has contributed to a 31% increase in applications compared to the same period last year. As the spring home-buying season approaches, the purchase index has also seen a rise of over 4% year-on-year, with activity improving across all loan categories.
Refinance Index and Other Trends
The Refinance Index continued its upward trajectory, increasing by 16% from the previous week, following a significant rise of 37% the week before. Year-over-year, this index has surged by 90%. The seasonally adjusted Purchase Index saw a 7% increase from the prior week, while the unadjusted Purchase Index rose by 8%, now standing 4% higher than this time last year.
Government Loan Applications on the Rise
Kan noted, “Government purchase applications experienced an 11 percent increase—helped by the FHA rate dropping to 6.34 percent.” Furthermore, average loan amounts have also risen, reaching $460,800, a record high in the survey’s history since 1990.
Shifts in Mortgage Application Shares
The refinance segment of total mortgage activity rose to 45.6%, up from 43.8% the previous week. Additionally, the share of adjustable-rate mortgages (ARMs) also increased, now comprising 7.2% of total applications.
Conclusion
These trends in mortgage applications and rates suggest a vibrant start to the spring housing market. For those interested in the full report, please visit this source.
