Mortgage applications inched a bit higher in the week ended June 26, driven by a dip in mortgage rates and an increase in purchase applications, which were offset by a slip in refinancings, the Mortgage Bankers Association said.
The MBA’s Market Composite Index, which includes fixed- and adjustable-rate purchase and refinance mortgages, rose 0.04% from the previous week. The Purchase Index climbed 1% week over week, while the Refinance Index slipped 1%.
“Mortgage rates eased slightly last week as oil prices declined. As a result, mortgage applications increased modestly, with an uptick in purchase activity offsetting a smaller decline in refinances,” said Joel Kan, MBA’s vice president and deputy chief economist. “Purchase applications remain ahead of 2025’s pace and have exhibited year-over-year growth for almost three months, as prospective homebuyers are finding opportunities in markets with ample inventory and easing home-price growth. ARM loans accounted for less than 8% of applications, the lowest share since January, as the yield curve continues to flatten with relatively higher short-term rates.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) decreased to 6.57% from 6.59%, while the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA slid to 6.00% from 6.02%.
