Demand Jumps After Dipping for Almost a Month

Mortgage applications ticked up 12.5% for the week ending June 6, 2025—after falling for three consecutive weeks, according to the Mortgage Bankers Association (MBA).

On an unadjusted basis, the index increased 23% compared to the previous week.

“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,” said Joel Kan, MBA’s vice president and deputy chief economist. “Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers.”

Home loan refinancing increased 16% from the prior week and was 28% higher than the same time one year ago.

The seasonally adjusted purchase index increased 10% from a week earlier and the unadjusted purchase index increased 20% compared to the prior week—it was 20% higher than the same time a year ago.

Refinance loans saw its share of mortgage activity increase to 36.7% of total applications—that’s up from 35.2% the previous week.

FHA (Federal Housing Administration) applications decreased to 18% from 18.7% a week ago. VA applications also decreased to 1%—to 11.6%, but USDA loan applications was a tick higher to 0.6% from 0.5% the prior week.

The average contract interest rate for 30-year fixed mortgages with conforming loan balances ($806,500 or less) slightly 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 mortgages with jumbo loan balances (greater than $806,500) increased as well 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 mortgages backed by the FHA saw a decrease to 6.60%, compared to a week ago when it was 6.68% and with points decreasing to 0.88 from 0.93 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

This week, it’s the opposite for the average contract interest rate for 15-year fixed mortgages. It saw a decrease 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.

For 5/1 ARMs, the average contract interest rate 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.

“Despite ongoing uncertainty surrounding the economy, homebuyers seem to be taking advantage of loosening housing inventory in certain markets,” says Kan.

The increased mortgage activity report comes on the heels of MBA CEO Bob Broeksmit commenting on the Fannie Mae and Freddie Mac talk. Broeksmit made remarks at the HousingWire conference in Colorado Springs, CO, on June 10—nearly two weeks after President Donald Trump said he wanted to bring the two entities “public.”

“We do not believe that the president’s posts indicate a set course or a set timetable, and I say that based on conversations with key decision-makers in the administration, who continue to say that this is not a 2025 issue,” said Broeksmit.

“It’s very complex,” he added. “They’ve been in a conservatorship too long, but it more or less works.”

Since a federal bailout in 2008, Fannie and Freddie have remained under government conservatorship, which subjects them to strict oversight and regulation by the Federal Housing Finance Agency.

Mortgage rates are calculated by various factors in the economy, and the length of your loan will also figure into the mortgage rate you qualify for.

The 30-year mortgage rate is tied to the yield of the 10-year Treasury note, according to Fannie Mae. As the yield on the 10-year Treasury note moves, mortgage rates follow.

The yield on the 10-year Treasury note is determined by expectations for shorter-term interest rates in the economy over the duration of a bond, plus a term premium.

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