May 9, 2025

Mortgage Applications See Spring Surge Amid
Rising Pending Sales

The housing market is showing new signs of momentum this spring. Mortgage applications for home purchases jumped 13% in the week ending May 2 compared to the same time last year, according to new data from the Mortgage Bankers Association (MBA). This surge suggests more buyers are actively entering the market, despite elevated home prices and steady mortgage rates.

This increase in mortgage activity follows another promising indicator: a 6.1% month-over-month rise in pending home sales in March, as reported by the National Association of REALTORS® (NAR). This marks the largest monthly gain since December 2023 and points to growing buyer confidence.

Lawrence Yun, chief economist for NAR, says this upswing reflects a buildup of motivated buyers, likely encouraged by steady job growth. “Pending sales don’t guarantee closed deals,” Yun notes, “but the sharp increase signals strong buyer interest in today’s market.”

Meanwhile, MBA’s chief economist Michael Fratantoni highlighted a notable uptick in applications for conventional loans—typically associated with higher loan amounts and more experienced buyers. “Given the broader economic uncertainty, the strength in conventional loan demand is impressive,” he said.

Even though mortgage rates have remained mostly unchanged, they're still more favorable compared to last year, offering further encouragement to buyers. Freddie Mac reports the following national averages for the week ending May 8:

• 30-year fixed-rate mortgage: 6.76% (unchanged from the previous week; down from 7.09% a year ago)

• 15-year fixed-rate mortgage: 5.89% (slightly down from 5.92% last week; down from 6.38% a year ago)

“Mortgage rates have held steady for weeks,” says Sam Khater, chief economist at Freddie Mac. “Compared to last year, rates are more stable, and that’s giving buyers the confidence to move forward.”

With pending sales climbing and mortgage applications rising, the spring market appears to be gaining traction—an encouraging sign for buyers, sellers, and industry professionals alike.

By: Melissa Dittmann Tracey
Source: REALTOR® Magazine – May 9, 2025
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