Mortgage applications declined last week, even as interest rates eased to their lowest level since April, according to the Mortgage Bankers Association's (MBA) latest Weekly Mortgage Applications Survey.
The news follows an uptick in mortgage apps the week before. The MBA’s Market Composite Index, which measures total loan application volume, fell 2.6% on a seasonally adjusted basis for the week ending June 13. On an unadjusted basis, application volume was down 4% from the prior week.
Purchase activity dropped 3% from the week before on a seasonally adjusted basis and 5% unadjusted. However, it remained 14% higher than the same time last year. Refinance applications also dipped, falling 2% week over week, though they were still 25% above levels from a year ago.
“Mortgage rates decreased last week, driven by financial market volatility caused by current geopolitical conflict and ongoing tariff uncertainties. The 30-year fixed rate decreased to 6.84%, its lowest level since April,” said Joel Kan, vice president and deputy chief economist at MBA.
“Even with lower average mortgage rates, applications declined over the week as ongoing economic uncertainty weighed on potential homebuyers’ purchase decisions,” he added.
Kan noted that refinance activity dropped for both conventional and government-backed loans. One exception came from the VA segment, which showed some resilience.
VA loan applications “bucked the trend with a 2% increase in purchase applications and a slight increase in refinance applications,” Kan said. Meanwhile, the overall average loan size, at $380,200, was the lowest since January 2025.
The share of refinancing applications edged up to 37.3% from 36.7% the week before. The adjustable-rate mortgage (ARM) share, however, slipped to 7.1%.
Among government loan types, FHA loan activity decreased slightly to 17.8% of all applications, from 18% a week earlier. VA loan applications increased to 12.1% from 11.6%, while USDA-backed loans held steady at 0.6%.
Interest rates moved lower across the board:
- The average rate for 30-year fixed-rate mortgages with conforming balances fell to 6.84% from 6.93%, even as points rose to 0.66 from 0.64.
- Jumbo loan rates dropped to 6.81% from 6.93%, with points unchanged at 0.63.
- FHA-backed 30-year fixed rates ticked down to 6.57% from 6.60%.
- The 15-year fixed rate edged down to 6.14% from 6.16%.
- The average rate on 5/1 ARMs decreased to 6.10% from 6.22%, though points rose to 0.57 from 0.33.
MBA’s weekly survey, which dates back to 1990, tracks mortgage activity based on responses from a wide range of lenders, including mortgage bankers, commercial banks, and credit unions.
