Mortgage applications rise 2.7% as rates fall to lowest since April

Published 02/07/2025, 14:30
Mortgage applications rise 2.7% as rates fall to lowest since April

Investing.com -- Mortgage applications in the U.S. increased 2.7% for the week ending June 27, 2025, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

The Market Composite Index, which measures mortgage loan application volume, rose 2.7% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the Index jumped 13% compared to the week before. Last week’s results included an adjustment for the Juneteenth holiday.

Refinance applications saw a notable 7% increase from the previous week and were 40% higher than the same week one year ago. The seasonally adjusted Purchase Index edged up slightly by 0.1%, while the unadjusted Purchase Index rose 10% from the previous week and was 16% higher than the same week last year.

"Mortgage rates were lower across all loan types last week, with the 30-year fixed rate declining to its lowest level since April at 6.79 percent. This decline prompted an increase in refinance applications, driven by a 10 percent increase in conventional applications and a 22 percent increase in VA refinance applications," said Joel Kan, MBA’s Vice President and Deputy Chief Economist.

Kan added, "As borrowers with larger loans tend to be more sensitive to rate changes, the average loan size for a refinance application increased to $313,700 after averaging less than $300,000 for the past six weeks. Purchase activity was essentially flat over the week, as overall uncertainty continues to hold homebuyers out of the market. However, purchase activity still remains 16 percent higher than last year’s pace."

The refinance share of mortgage activity increased to 40.1% of total applications from 38.4% the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 7.8% of total applications.

FHA applications decreased to 18.2% of the total from 19.3% the week prior. VA applications increased to 12.0% from 11.7%, while USDA applications remained steady at 0.5%.

Average interest rates fell across all major mortgage types. The 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased to 6.79% from 6.88%, with points decreasing to 0.62 from 0.63.

For jumbo loan balances (greater than $806,500), the 30-year fixed-rate mortgages decreased to 6.78% from 6.88%, with points decreasing to 0.40 from 0.60.

The 30-year fixed-rate mortgages backed by the FHA fell to 6.53% from 6.59%, while 15-year fixed-rate mortgages decreased to 6.06% from 6.11%. The 5/1 ARMs decreased to 5.99% from 6.16%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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