Mortgage Applications Today: Home Loan Demand Rebounds as 30-Year Rate Falls to 4-Week Low

New home loan applications increased 2.8% from the week prior, for the week ending Feb. 13, according to the Mortgage Bankers Association. The increase comes after mortgage applications were on the decline for three straight weeks.

The Market Composite Index, a measure of mortgage loan application volume, increased 2.8% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5% compared with the previous week.

The boost in mortgage applications comes as mortgage interest rates for a 30-year fixed home loan decreased to 6.09% for the week ending Feb. 12, according to Freddie Mac. The rate comes in 0.02% lower than the week prior and significantly less than the average rate of 6.87% during the same period in 2025.

The Refinance Index increased 7% from the previous week and was 132% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index increased 3% compared with the previous week and was 8% higher than the same week one year ago.

"Mortgage applications rose last week as the lowest rates in four weeks helped to revive some refinance activity. Treasury yields ended the week lower as weaker data on retail sales and home sales outweighed better-than-expected readings on the job market for January,” said Joel Kan, MBA’s vice president and deputy chief economist.

The refinance share of mortgage activity increased to 57.4% of total applications from 56.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2% of total applications.

The Federal Housing Administration (FHA) share of total applications remained unchanged at 18.4% from the week prior. Veterans Affairs share of total loan applications increased to 16.5% from 16% the week prior. The USDA share of total applications remained unchanged at 0.4% from the week prior.

“Mortgage rates moved lower with the 30-year fixed rate decreasing to 6.17 percent, and all other loan types in the survey also declined," Kan said. "Refinance applications increased across all loan types, marking the strongest week for refinancing since mid-January. There was a drop in purchase applications overall, although VA purchase applications bucked the trend and increased four percent."

Contract rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.17% from 6.21%, with points remaining unchanged at 0.56 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) decreased to 6.21% from 6.30%, with points decreasing to 0.27 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.  

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 5.99% from 6.01%, with points decreasing to 0.65 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.50% from 5.65%, with points increasing to 0.73 from 0.68 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 5.29% from 5.33%, with points decreasing to 0.62 from 0.67 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. 

Mortgage rates calculated

Mortgage rates are calculated by various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.