Economic uncertainty was good news for the mortgage business.
Application volume last week shot up 20.4% as the 30-year fixed-rate mortgage hit its lowest point so far in 2025, the Mortgage Bankers Association said.
Last week's data reflected brewing consumer malaise before President Trump's
The factors drove the largest weekly decline in the 30-year FRM since November 2024, said Joel Kan, MBA vice president and deputy chief economist. The movement helped the MBA's Refinance Index rise 37% from the week ago period, and 83% higher than the same time a year ago when the 30-year
Refi activity moved at its fastest pace since last October, the MBA said. Government-sponsored refi applications were up 42%, driven by a 75% increase in Department of Veterans Affairs-backed loans.
Rates falling across the board also swayed home purchases, with application volume up 9% according to the MBA. On an unadjusted basis, that was just 2% higher than the same week last year.
"Purchase activity typically ramps up this time of year and did last week, continuing its run ahead of last year's pace," said Kan in a press release. "These are more green shoots as we head into the spring homebuying season."
Other falling rates included Federal Housing Administration-backed loans fading 15 basis points to 6.42%, and the 15-year FRM losing 13 basis points to close last week at 6.12%.
The average contract interest rate for 30-year jumbo loans, beyond the $806,500 conforming loan limit, also fell past the 7% threshold to 6.83%. Adjustable-rate mortgages also crossed a psychological barrier, with 5/1 ARM products falling 20 basis points to 5.85%.
