Mortgage applications fell 3.9% last week, as persistently high loan rates continue to weigh on homebuying activity. It marked the third week in a row that mortgage demand dipped, according to survey data from the Mortgage Bankers Association (MBA).

The 3.9% week-over-week decline is a seasonally adjusted figure that was further adjusted by the MBA to account for the Memorial Day holiday. On an unadjusted basis, mortgage applications decreased 15% compared to the prior week.

The association’s seasonally adjusted indexes that track mortgage applications for purchases and refinances each fell about 4% from the previous week.

Joel Kan, MBA’s vice president and deputy chief economist, noted in a press release that despite a downtick in most mortgage rates, homeowners looking to refinance appear to be waiting for additional interest-rate relief.

“Most mortgage rates moved lower last week, with the 30-year fixed rate declining to 6.92% and staying in the 6.8% to 7% range since April,” Kan said. “Refinance activity fell across both conventional and government [segments] and the overall average refinance loan size was the smallest since July 2024, as potential borrowers hold out for larger rate drops.”

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) decreased last week to 6.92% from 6.98%, according to the MBA. The average rate for 30-year mortgages with jumbo balances greater than $806,500 fell one basis point to 6.92%. Meanwhile, the MBA reported that the average interest rate for 15-year fixed-rate mortgages increased two basis points to 6.25%.

In terms of government lending, the Federal Housing Administration share of total mortgage applications rose to 18.7% from 17.9% the previous week. The Department of Veterans Affairs share of applications saw a slight increase to 12.6% from 12.3.% the week prior. The U.S. Department of Agriculture share was unchanged last week at 0.5%.