WASHINGTON— Mortgage applications increased 12.5% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 6, 2025.
Last week’s results included an adjustment for the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 12.5% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 23% compared with the previous week. The Refinance Index increased 16% from the previous week and was 28% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 10% from one week earlier. The unadjusted Purchase Index increased 20% compared with the previous week and was 20% higher than the same week one year ago, MBA said.
“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month, driven by growth in both purchase and refinance applications. Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers,” said Joel Kan, MBA’s vice president and deputy chief economist. “The rate for 15-year fixed rate loans and FHA loans saw declines last week, while the 30-year fixed rate was largely unchanged. Purchase applications were 20% ahead of last year’s pace, continuing to show strength compared to a year ago. Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets.”
The refinance share of mortgage activity increased to 36.7% of total applications from 35.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.2% of total applications.
FHA Share
The FHA share of total applications decreased to 18.0% from 18.7% the week prior. The VA share of total applications decreased to 11.6% from 12.6% the week prior. The USDA share of total applications increased to 0.6% from 0.5% the week prior, MBA said.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.93% from 6.92%, with points decreasing to 0.64 from 0.66 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.93% from 6.92%, with points increasing to 0.63 from 0.60 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.60% from 6.68%, with points decreasing to 0.88 from 0.93 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 6.16% from 6.25%, with points decreasing to 0.66 from 0.67 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week, MBA said.
The average contract interest rate for 5/1 ARMs increased to 6.22% from 6.14%, with points decreasing to 0.33 from 0.43 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.