The MBA's Market Composite Index, a measure of mortgage loan application volume, jumped 7.1% on a seasonally-adjusted basis for the week ending Oct. 24 after four weeks of declining activity. The index increased 7% on an unadjusted basis.

The Refinance Index boosted much of the activity, increasing 9% from the previous week and 111% from the same week a year ago.

"Mortgage rates decreased for the fourth consecutive week, with the 30-year fixed rate down to 6.30 percent, its lowest level since September 2024," said Joel Kan, MBA's vice president and deputy chief economist, in a press release Wednesday. "This recent decline in rates spurred the second consecutive week of increased refinance activity, driven mainly by conventional refinance applications."

The Purchase Index also rose 5% on a seasonally-adjusted basis last week, while the unadjusted Purchase Index climbed 4% from the previous week and 20% from a year ago.

The refinance share of mortgage activity increased again to 57.1% of total applications from 55.9% the previous week and 53.6% two weeks prior. The adjustable-rate mortgage share took a dip to 8.9% of total applications from 10.8% the week before.

"The ARM share of applications, which had been trending higher, dipped below 10 percent last week, as lower rates prompted more borrowers to choose fixed-rate loans," Kan said. "Additionally, the average loan size of a refinance application remained elevated at $393,900, as borrowers with larger loan sizes continue to be sensitive to rate movements."

Loans backed by the Federal Housing Administration, the Department of Veterans Affairs and U.S. Department of Agriculture all saw their share of loans decrease last week as well. FHA-backed loans dropped 1.3 percentage points, while the VA and USDA each experienced a 0.1-percentage-point cut. 

Three of the five types of mortgages the MBA tracks saw a decline in interest rates last week compared with the week prior, including:

• 30-year fixed-rate mortgages with conforming loan balances, 6.30% from 6.37%;
• 30-year fixed-rate mortgages with jumbo loan balances, 6.38% from 6.39%;
• and 15-year fixed-rate mortgages, 5.67% from 5.74%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA held at 6.12%, while five-year ARMs increased to 5.66% from 5.55%.