Home Loan Applications Inch Up 1.1% After One-Week Decline

Source: realtor.com

The mortgage market remains volatile, with applications rising 1.1% for the week ending June 20, 2025, per the Mortgage Bankers Association. This follows a decline the previous week. The seasonally adjusted Market Composite Index increased 1.1%, while the unadjusted index fell 10% from the prior week.

“The combination of the ongoing conflict in the Middle East, current economic conditions, and last week’s FOMC meeting resulted in slightly lower Treasury rates. However, mortgage rates still edged higher but remained in the same narrow range, with the 30-year fixed rate increasing to 6.88 percent last week” says Joel Kan, MBA’s vice president and deputy chief economist.

The refinance index rose 3% from the previous week and was 29% higher than a year ago. The seasonally adjusted purchase index fell 0.4%, while the unadjusted purchase index dropped 11% from the prior week but remained 12% above last year’s level. These figures represent mortgage applications for home purchases, adjusted for seasonal trends.

Refinance applications rose to 38.4% of total, up from 37.3% the previous week. Adjustable-rate mortgage (ARM) activity dropped to 6.9%. FHA applications increased to 19.3%, while VA and USDA applications fell to 11.7% and 0.5%, respectively.

Contract rates

The average contract interest rate for 30-year fixed conforming loans rose slightly to 6.88% from 6.84%, with points decreasing to 0.63 from 0.66 for 80% LTV loans. Jumbo loan rates also increased to 6.88% from 6.81%, with points down to 0.60 from 0.63. The effective rates for both loan types increased compared to last week.

The average FHA 30-year fixed mortgage rate rose to 6.59% from 6.57%, with points dropping to 0.85; the effective rate was unchanged. The 15-year fixed rate fell to 6.11% from 6.14%, with points up to 0.74; its effective rate decreased. The 5/1 ARM rate increased to 6.16% from 6.10%, with points down to 0.54; its effective rate rose.