FX.co ★ US Mortgage Applications Down for 3rd Week: MBA

The volume of mortgage applications in the United States decreased by 3.9% for the week ending May 30, 2025, marking the third consecutive week of declines, following a 1.2% drop in the preceding week, as reported by the Mortgage Bankers Association. Refinancing applications, which are more susceptible to changes in weekly rates, fell by 3.6%, and applications for home purchase mortgages decreased by 4.4%. "Refinance activity declined in both the conventional and government segments, with the average refinance loan size reaching its lowest point since July 2024, as prospective borrowers await more significant rate reductions," noted Joel Kan, an economist at the MBA. In the same period, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $806,500) decreased by 6 basis points, settling at 6.92%. This follows a peak of 6.98% the previous week, when rising fiscal concerns drove long-term Treasury yields notably higher.