11:52 AM EST, 03/05/2025 (MT Newswires) -- Mortgage applications climbed last week as refinancing activity accelerated to its fastest pace since October amid a continued decline in mortgage rates, the Mortgage Bankers Association said Wednesday.

The market composite index, which measures loan application volume, jumped about 20% for the week ended Feb. 28 on a seasonally adjusted basis, following two consecutive weekly declines. Without adjustments, the index increased 22%.

"Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the US," Joel Kan, the association's deputy chief economist, said in a statement.

US President Donald Trump's recently announced 25% tariffs against Canada and Mexico went into effect Tuesday, while the US government doubled its levy on Chinese imports. Canada and China announced counter measures.

The refinance index surged at its fastest pace since October, at 37%, driven by conventional and government applications, Kan said.

The 30-year rate on mortgages with conforming loan balances of $806,500 or less dipped to 6.73% -- the lowest level since December -- from the prior week's 6.88%, Kan said. For loan balances higher than that amount, the rate dipped to 6.83% from 7%.

The rate for 30-year loans backed by the Federal Housing Administration dropped to 6.42% from 6.57%. The share of FHA loans fell to 16.7% of total applications from 17.4% the week before.

The seasonally adjusted purchase index increased 9% on a weekly basis.

"This is a period where we typically see purchase activity ramp up and purchase applications were up over the week and continued to run ahead of last year's pace, more green shoots as we head into the spring homebuying season," Kan said.