Borrowers continue to show keen interest in the mortgage market despite economic turmoil
Mortgage applications in the US rose last week, marking the highest level in over a month, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 6, 202.
For the week ending June 6, the Market Composite Index — which measures total loan application volume — increased 12.5% on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index rose 23%.
Refinancing activity saw a notable gain, with the Refinance Index climbing 16% from the week before and 28% higher than the same period in 2024. Purchase applications also contributed to the upswing, with the seasonally adjusted Purchase Index increasing by 10%. On an unadjusted basis, purchase applications rose 20% week-over-week and were 20% higher than the same week last year.
“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,” said Joel Kan, MBA’s vice president and deputy chief economist. “Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers.”
Kan noted that the average rate for 15-year fixed and FHA-backed loans declined, while the 30-year fixed rate held steady. “Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets,” he added.
The share of refinancing activity rose to 36.7% of total applications, up from 35.2% the previous week. Applications for adjustable-rate mortgages (ARMs) also increased, accounting for 7.2% of total activity.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances edged up to 6.93% from 6.92%, while rates for jumbo loans matched that figure. However, FHA-backed 30-year mortgage rates declined to 6.60% from 6.68%. Rates for 15-year fixed loans dropped to 6.16%, and 5/1 ARMs rose to 6.22%.
Government loan activity showed mixed changes. The FHA share fell to 18.0% from 18.7%, VA loans decreased to 11.6% from 12.6%, while USDA applications edged up to 0.6%.
The MBA’s weekly survey has been conducted since 1990 and covers over 75% of all U.S. retail residential mortgage applications.
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