The volume of mortgage applications in the United States fell by 3.9% in the week ending May 30, 2025, marking the third consecutive weekly decline, according to data from the Mortgage Bankers Association (MBA). That follows a 1.2% drop in the previous week, reflecting continued weakness in both refinance and purchase demand.
US mortgage rates fall from four-month highs
Refinance applications—typically the most sensitive to rate movements—fell 3.6%, while applications to purchase a home declined 4.4%. “Refinance activity decreased across both conventional and government loan segments, and the overall average refinance loan size was the lowest since July 2024, suggesting that many potential borrowers are waiting for more substantial rate cuts,” said Joel Kan, MBA's deputy chief economist.
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Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) eased by 6 basis points to 6.92%, retreating from the four-month high of 6.98% seen the week prior. The earlier spike in rates was largely driven by rising long-term Treasury yields amid growing fiscal concerns. For comparison, mortgage rates stood at 7.07% during the same week one year ago.
The ongoing slowdown in mortgage activity underscores the sensitivity of the housing market to borrowing costs and highlights how even modest rate movements can impact demand in a high-price, high-rate environment.
