Mortgage application volume decreased 4.4% on an adjusted basis during the week ended June 30, as the average rate for a 30-year fixed-rate mortgage increased to 6.85%, up from 6.75% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances decreased 4% compared with the previous week and were down 30% compared with the same week one year ago.
Applications for purchases decreased 5% percent compared with the previous week and were down 22% compared with the same week one year ago.
“Mortgage applications fell to their lowest level in a month last week as rates for most loan types increased,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “As mortgage-Treasury spreads remained wide, the 30-year fixed rate increased to 6.85 percent, the highest rate since the end of May.”
“Purchase applications decreased for the first time in a month, as homebuyers remained sensitive to rate changes,” Kan says. “Rates are still over a percentage point higher than a year ago, and housing affordability is still a challenge in many parts of the country. However, the average loan size for a purchase application declined to $423,500 – its lowest level since January 2023. This was likely driven by reduced purchase activity in some high-price markets and more activity in some of the lower price tiers as buyers searched for more affordable options.”
The refinance share of mortgage activity increased to 27.4% of total applications, up from 27.2% the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 6.2% of total applications.
Photo: Kaleb Tapp