Mortgage Applications Rise: MBA Weekly Survey Update (2025/12/11 03:30:35)
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By Calculated Risk on December 10, 2025 07:00:00 AM
The Mortgage bankers Association (MBA) released its Weekly mortgage Applications Survey today, revealing a 4.8 percent increase in mortgage submission volume for the week ending December 5, 2025. This increase follows adjustments made for the Thanksgiving holiday in the previous weekS data.
Key Findings from the MBA Survey
- Market Composite Index: Increased 4.8 percent on a seasonally adjusted basis. Unadjusted, the index jumped 49 percent from the prior week.
- Refinance Index: Rose 14 percent from the previous week, and is 88 percent lower than the same week one year ago.
- Purchase Index: Increased 6 percent from the previous week, and is 1 percent lower than the same week one year ago.
Diving Deeper into the Numbers
The significant unadjusted increase of 49 percent is largely attributable to the comparison against the Thanksgiving week, which typically sees lower application volume. Though, the seasonally adjusted increase of 4.8 percent indicates a genuine uptick in mortgage demand.
The ample decline in the Refinance Index (88 percent year-over-year) continues to reflect the impact of rising interest rates. Homeowners who previously benefited from lower rates are less inclined to refinance.
The modest increase in the Purchase Index (6 percent week-over-week, but down 1 percent year-over-year) suggests a cautious optimism in the housing market. While purchase applications are up slightly, they remain below levels seen a year ago.
what This means for the Housing Market
This week’s data presents a mixed picture. The increase in overall applications is encouraging, but the continued dominance of purchase applications over refinances highlights the current market dynamics. Higher mortgage rates are clearly impacting affordability and refinancing activity.
FAQ
- What does the market Composite Index measure? The Market Composite Index provides a comprehensive look at mortgage loan application volume.
- Why was there a large unadjusted increase? The increase is partially due to comparing data against the typically slower Thanksgiving week.
- What is driving the decline in refinance applications? Rising mortgage interest rates are the primary factor.
Key Takeaways
- Mortgage applications increased 4.8 percent week-over-week.
- Refinance applications remain substantially down year-over-year.
- Purchase applications saw a slight increase but are still below last year’s levels.
- Rising interest rates continue to shape the mortgage landscape.
Looking ahead, the housing market will likely remain sensitive to interest rate fluctuations. Continued monitoring of the MBA’s Weekly mortgage Applications Survey will be crucial for understanding evolving trends in mortgage demand and the overall health of the housing sector.
Source: Mortgage Bankers Association
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