Mortgage Activity Levels Off in April as Rates Increase
In April 2025, U.S. mortgage activity remained relatively stable amid rising interest rates, according to the Mortgage Bankers Association (MBA). The Market Composite Index, which measures mortgage loan application volume, saw a modest 0.4% month-over-month increase on a seasonally adjusted basis. However, compared to April 2024, the index was up 29.3%. The average rate for a 30-year fixed mortgage rose by 10 basis points to 6.8%. Despite higher rates, purchase applications increased by 1.9% month-over-month and were 11.2% higher than a year ago, while refinance activity declined by 1.4% from March but remained 62.0% above April 2024 levels.
Loan sizes remained relatively steady during the month. The average loan size across all applications held at $403,500. Purchase loan sizes edged down 1.3% to $444,000, while refinance loan sizes increased slightly by 0.5% to $339,300. Notably, the average loan size for adjustable-rate mortgages (ARMs) decreased by 7.8%, from $1.14 million to $1.05 million.
These trends suggest that while higher mortgage rates are impacting refinancing activity, home purchase demand remains resilient. The stability in loan sizes indicates that buyers are adjusting to the current rate environment without significant changes in borrowing amounts.