Mortgage application activity posted a modest gain last week, according to the Mortgage Bankers Association's (MBA) latest Weekly Mortgage Applications Survey, with overall volume inching up 1.1% on a seasonally adjusted basis for the week ending June 20, 2025.
The increase came despite slightly higher mortgage rates and was helped by a bump in refinancing activity, particularly for FHA loans.
This week’s results include an adjustment for the Juneteenth holiday, MBA noted, as the data reflect a shortened work week for many lenders.
The composite index — a measure of total loan application volume — fell 10% on an unadjusted basis from the prior week but showed a 1.1% rise after seasonal adjustment. Refinance applications rose 3% week-over-week and were up 29% compared to the same period a year ago.
Purchase applications, on the other hand, fell 0.4% on a seasonally adjusted basis and 11% unadjusted from the previous week, but were still 12% higher than a year ago.
MBA Vice President and Deputy Chief Economist, Joel Kan, noted geopolitical tensions and recent Federal Reserve signals created downward pressure on Treasury yields, while mortgage rates crept higher.
“Applications increased slightly overall driven by FHA refinances, but conventional applications saw declines over the week,” Kan said. The average loan size for purchase applications declined to $436,300 — the lowest level since January, Kan pointed out — driven by decreasing conventional purchase loan sizes.
The 30-year fixed mortgage rate rose to 6.88% from 6.84% the prior week. Rates on jumbo loans also hit 6.88%, up from 6.81%. The rate for 30-year FHA-backed loans rose from 6.57% to 6.59%, while the 15-year fixed dipped to 6.11% from 6.14%. The rate for 5/1 adjustable-rate mortgages (ARMs) climbed to 6.16% from 6.10%.
Meanwhile, the refinance share of total applications edged up to 38.4%, up from 37.3% the previous week. The share of applications backed by the FHA increased to 19.3% from 17.8%, while VA loans made up 11.7%, down from 12.1%. The USDA loan share of applications decreased from 0,6% to 0,5%.
The MBA’s weekly survey, which covers U.S. retail residential mortgage applications originated through retail and consumer-direct channels, has been tracking mortgage trends since 1990.
