Home Loan Applications Rise for the Second Week Straight

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The latest update from the Mortgage Bankers Association reveals continued upward momentum in home loan activity. According to the association’s weekly survey, “mortgage loan application volume increased 1.1% on a seasonally adjusted basis from one week earlier.” Though less dramatic than the previous week’s 11% surge, this still points to a steady pace of market engagement.

The biggest shift was seen in purchase loans. As Hannah Jones, senior economic research analyst at Realtor.com®, explained:

“The most notable change in this week's data was the increase in purchase applications, which jumped 2.3% on a weekly basis and were up 18% year over year.”

This jump comes at a time when inventory levels are at their highest in over five years, giving buyers more properties to choose from and fueling renewed activity in the spring market.

Rates Nudge Up Slightly for 30-Year Loans

Mortgage rates experienced only subtle shifts. “Last week saw steadier mortgage rates, as the FOMC meeting played as predicted,” said Mike Fratantoni, MBA’s chief economist. The average rate for 30-year fixed-rate mortgages with conforming loan balances inched up to 6.86% from 6.84%.

Jumbo loan rates moved slightly lower to 6.85%, and rates for 15-year fixed-rate mortgages ticked down to 6.12%. Meanwhile, 5/1 adjustable-rate mortgage rates increased to 6.09%. These small movements highlight the relatively stable rate environment—an important consideration for buyers planning their financing strategy.

Refinancing Activity Holds Strong Year-Over-Year

While refinancing activity dipped slightly compared to the prior week, the year-over-year numbers show a different story. As Jones explained:

“Refinance applications were also steady for the week, but were significantly higher year-over-year, spurred on by lower mortgage rates compared to one year ago.”

Specifically, the refinance index declined by 0.4% from the previous week. The portion of total mortgage applications attributed to refinancing also decreased slightly to 36.4%, down from 37.1%.

Uptick in Government-Backed Loan Applications

Government-backed mortgages are seeing increased interest, particularly among buyers leveraging programs such as FHA and VA loans. According to Fratantoni:

“There was a notable gain in government purchase applications, up almost 5 percent for the week and 40 percent on an annual basis.”

Additionally, the share of FHA loan applications rose compared to the prior week, and VA loan applications also showed a modest increase. These shifts suggest more buyers are turning to loan options designed to ease entry into homeownership.

Market Takeaway for Orange County Buyers and Sellers

For those in Orange County, these national trends are highly relevant. The combination of greater housing inventory and a relatively stable rate environment is encouraging more buyers to engage. Sellers, in turn, benefit from motivated purchasers who now have more loan options and a slightly more favorable borrowing landscape than last year.

Bottomline

Whether you’re stepping into the market for the first time, moving up, or preparing to sell, now is a smart time to act. Increased housing inventory and active buyer interest make Orange County a dynamic real estate environment. At Whitestone Real Estate, we’re here to help you move with confidence—reach out today to start the conversation.

Reference: Dumandan, J. (2025, May 14). Mortgage demand from homeowners recovers as applications rise for the second week in a row. Realtor.com.