Mortgage demand continued its resurgence last week, with seasonally adjusted application volume rising 9.4% from the prior week’s total, according to the latest weekly survey by the Mortgage Bankers Association (MBA). On an unadjusted basis, the association’s mortgage application index climbed 13%.
It’s the third week in a row that overall mortgage demand has accelerated. The MBA’s seasonally adjusted purchase index had a notable gain of 9% after increasing by just 0.1% a week earlier.
Joel Kan, MBA’s vice president and deputy chief economist, said that after adjusting for the Fourth of July holiday, purchase applications reached their highest level since February 2023, buoyed by a dip in mortgage rates.
“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” Kan observed in a press release. “The average loan size on a purchase application, at $432,600, was at its lowest since January 2025. The refinance index also increased over the week, with VA [Veterans Affairs] refinances in particular up 32%.”
The MBA’s refinance index gained 9% from the previous week and ended 56% higher than a year ago. Refinances represented 40% of total applications, roughly the same mark as the prior week. The adjustable-rate mortgage (ARM) share of mortgage activity saw a slight downtick to 7.7% after clocking in at 7.8% the week before.
The VA share of total applications rose to 13% from 12% for the week ending June 27. The Federal Housing Administration share fell to 17.9% from 18.2% the previous week, while the U.S. Department of Agriculture share increased to 0.6% from 0.5%.
The MBA noted that the average rates for 30-year and 15-year fixed-rate mortgages declined last week.
The 30-year rate for mortgages with conforming loan balances of $806,500 or less fell to an average of 6.77% from 6.79%, while 30-year jumbo loans over that dollar mark dipped to 6.69% from 6.78%. The 15-year rate decreased to 6.04% from 6.06%, according to the MBA.
Freddie Mac pegged the average 30-year rate at 6.67% last week and the 15-year rate at 5.8%.
