Mortgage applications saw a modest decline in purchases but a significant surge in refinance demand this week, according to the latest data from the Mortgage Bankers Association (MBA). The Refi index reached its highest levels since October 2024, driven by the recent drop in mortgage rates.
Rates have been trending downward over the past two weeks, with Wednesday’s drop being particularly notable. However, the refinance market is more sensitive to short-term rate fluctuations than purchases.
The purchase side of the market remained relatively unresponsive to rates last week, with the MBA’s purchase app index moving down for the third consecutive week. Despite this, it’s still within the recent range.
A closer look at the data reveals that refinance applications have been on the rise. The percentage of loans in different categories has shifted slightly between this week and last week. Refinances now account for 40.2% of all loans, up from 39.0%.
Other loan types saw modest changes as well: FHA loans decreased by 0.2%, while VA loans rose by 1.3%. ARM rates moved up to 6.20, while jumbo loans fell to 6.96.
Survey respondents reported 30-year fixed rates at 6.95 with 0.64 points, down slightly from the previous week’s rate of 6.97.
Source: https://www.mortgagenewsdaily.com/news/02142025-mortgage-applications-mba