In yet another sign of the housing market slowing, weekly mortgage applications fell by 2.6% on a seasonally adjusted level for the week ending June 13, according to the Mortgage Bankers Association (MBA).

The MBA’s market composite index, which is a measure of weekly mortgage loan application volume, reports that on an unadjusted basis, the mortgage rate was down 4% from the previous week. The refinance index declined 2% from the previous week but was still 25% higher than the same week one year ago. The purchase index decreased 5% compared to the previous week but rose 14% from the same week one year ago.

The MBA reports that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) fell to 6.84% from 6.93%. The average contract interest rate for 15-year fixed-rate mortgages was down 0.2% from the previous week to 6.14%.

Joel Kan, MBA’s vice president and deputy chief economist, said in a press release that mortgage rates decreased during the week due to geopolitical conflict and ongoing tariff uncertainties causing financial market volatility. The 30-year fixed rate decreased to 6.84 percent, its lowest level since April.

“Even with lower average mortgage rates, applications declined over the week as ongoing economic uncertainty weighed on potential homebuyers’ purchase decisions,” Kan said in a statement.

Refinancing accounted for 37.3% of mortgage activity, an increase of 0.6% for the week. The Federal Housing Authority’s share of applications fell 0.2% from the previous week to 17.8%. The share of total applications from the Department of Veterans Affairs (VA) remained unchanged from the prior week at 0.6%.  

“Refinance activity declined for both conventional and government borrowers,” Kan said. “VA applications, however, bucked the trend with a 2% increase in purchase applications and a slight increase in refinance applications. Additionally, the overall average loan size at $380,200, was the lowest since January 2025.”