Mortgage refinancing demand shoots 23% higher

Plus: Former Fannie Mae employees sue for defamation, seek $82M

August 15, 2025

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Disclaimer: Average mortgage rates as of August 14, 2025. © MND Daily Rate Index.

1. Mortgage refinancing demand shoots 23% higher

Total mortgage application volume rose 10.9% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

  • Applications to refinance a home loan jumped 23% for the week and were 8% higher than the same week one year ago. That was the strongest week for refinancing since last April.

  • The refinance share of mortgage activity increased to 46.5% of total applications from 41.5% the previous week.

  • Applications for a mortgage to purchase a home rose 1% for the week and were 17% higher than the same week one year ago.

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.67% from 6.77%.

“As seen in other recent refinance bursts, the average loan size grew significantly to $366,400. Borrowers with larger loan sizes continue to be more sensitive to rate movements,” said Joel Kan, an MBA economist, in a release.

2. Former Fannie Mae employees sue for defamation, seek $82M

Two lawsuits filed Aug. 12 in Fairfax County, Va., allege Fannie Mae and top executives, including FHFA Director William Pulte and CEO Priscilla Almodovar, defamed 41 ex-employees fired April 2, 2025.

Each plaintiff seeks $1 million, citing damage from press releases and TV interviews linking them to fraud in the company’s Charitable Giving program. Fannie Mae had publicly stated over 100 workers were terminated for “unethical conduct” and alleged kickback schemes.

The suits follow a separate July federal case claiming age and nationality discrimination involving more than 60 former Indian-national employees. Fannie Mae and FHFA have not commented.

3. More Nuggets

📝 Fannie Mae adds new temporary buydown rules for servicers. (FannieMae)

🔺 Fed faces dilemma as wholesale inflation spikes in July. (theHill)

⚠️ One in five homebuyers is willing to compromise safety to afford a home. (Redfin)

🏡 AnnieMac expands in Florida by acquiring Home Solution Lenders. (HousingWire)

💼 Bill Ackman calls for Fannie-Freddie merger as Trump teases IPO. (theHill)

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4. Buyer’s agent commissions are bouncing back

According to Redfin’s analysis published Tuesday, during the second quarter of 2025, the average buyer’s agent commission was 2.43%, up from 2.38% in Q2 2024.

  • It was the third consecutive quarter that commissions ticked a little higher after new NAR commissions rules went into effect in August 2024.

The commission rates have now returned to the levels observed in early 2024 prior to the introduction of these NAR rules, which were part of a settlement related to a class action lawsuit by home sellers.

5. Mortgage delinquencies decreased in Q2 2025

According to the MBA’s delinquency survey released yesterday, the delinquency rate for mortgages on residential properties decreased to a seasonally adjusted rate of 3.93% of all loans outstanding at the end of the second quarter of 2025.

The delinquency rate was down 11 basis points from the first quarter of 2025 and down 4 bps from Q2 2024. The share of loans on which foreclosure actions were started in the second quarter fell by 3 bps to 0.17%.

“The seasonally-adjusted mortgage delinquency rate declined to 3.93% in the second quarter and remains below the historic average of 5.21% dating back to 1979,” Marina Walsh, MBA’s vice president of industry analysis, said in a statement. “Conventional loan performance continues to perform exceptionally well, with delinquencies hovering near record lows. This contrasts with the rise in government delinquencies over the past few years.”

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☀️ You’re all caught up. See you on Monday!

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