Mortgage application volume increased 2.3% on an adjusted basis during the week ended February 7, as the average rate for a 30-year fixed-rate mortgage decreased slightly to 6.95%, down from 6.97% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 10% compared with the previous week and were up 33% compared with the same week one year ago.
Applications for purchases decreased 2% compared with the previous week but were up 2% compared with the same week one year ago.
“Mortgage rates moved slightly lower last week, which led to the pace of refinance applications reaching its strongest week since October 2024,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “The average loan size for refinance borrowers increased, as these borrowers tend to be more responsive for a given change in rates. Purchase applications were down from the previous week’s level but were slightly ahead of last year’s pace. The average loan size for a purchase application increased to its highest level since March 2022 at $456,100, partially driven by fewer FHA purchase applications but more VA loans compared to the previous week.”
The refinance share of mortgage activity increased to 40.2% of total applications, up from 39.0% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.0% of total applications.
Photo: Scott Graham