Biggest Jump in Mortgage Applications Since 2021
September 19 2025
What a difference a week makes for mortgage application demand. As we noted last week, mortgage rates were already trending lower than those captured in the weekly survey numbers from MBA and Freddie Mac. The expectation was that refinance activity would be surging in this week's data. That turns out to have been an understatement. For the first time in several years, we have to take our chart of MBA's refinance applications all the way back to 2022 in order to provide context for the levels achieved this week. Until now, September 2024 set the high water mark. That's a whopping 58% increase in refi demand versus last week, and it's 70% higher than the same week one year ago. The Purchase Index rose only 3%, but that leaves it near the best levels since early 2023. Overall applications were up 29.7%, the 2nd biggest jump since the last week of 2022, and in outright terms, application activity rose by the highest amount since July 2021! There are already clouds on the horizon, unfortunately. On the same day these numbers were released, rates began moving sharply higher in response to this week's Fed announcement (why?). The rate spike continued on Thursday in response to economic data. All told, rates are easily back up to the highest levels since before the September 5th jobs report. Mike Fratantoni, MBA’s SVP and Chief Economist noted "homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey."