HousingWireHousingWire
Mortgage applications increased 12.5% from one week earlier, which marked the largest increase in a month. That’s according to data from the Mortgage Bankers Association (MBA)’s Weekly Mortgage Applications Survey for the week ending June 6, which includes an adjustment for the Memorial Day holiday.
On an unadjusted basis, the index increased 23% compared with the previous week.
The refinance index increased 16% from the previous week and was 28% higher than the same week one year ago. The refinance share of mortgage activity increased to 36.7% of total applications, up from 35.2% a week earlier.
The seasonally adjusted purchase index increased 10% from one week earlier. The unadjusted purchase index was up 20% compared with the previous week and was 20% higher than the same week in 2024.
“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications. Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers,” said Joel Kan, MBA’s vice president and deputy chief economist.
“The rate for 15-year fixed-rate loans and FHA loans saw declines last week, while the 30-year fixed rate was largely unchanged. Purchase applications were 20% ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets.”
By product, the adjustable-rate mortgage (ARM) share of activity saw an increase to 7.2% of total applications. The U.S. Department of Agriculture (USDA) share of total applications also saw an increase, inching up from 0.5% to 0.6% during the week.
The Federal Housing Administration (FHA) share of total applications decreased from 18.7% to 18%, while the U.S. Department of Veterans Affairs (VA) share also tumbled from 12.6% to 11.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances and those for jumbo loan balances both increased to 6.93%, up from last week’s 6.92% figure.
The average contract interest rate for 30-year fixed mortgages backed by the FHA decreased from 6.68% to 6.6%. The average rate for 15-year fixed mortgages decreased from 6.25% to 6.16%, while 5/1 ARMs increased from 6.14% to 6.22%.
