Mortgage application volume surged 9.4% on lower rates during the week ended July 4, according to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey.
Applications for refinances increased 9% compared with the previous week and were up 56% compared with the same week one year ago.
Applications for purchases also increased 9% compared with the previous week and were up 25% compared with the same week one year ago.
“Mortgage rates moved lower last week, with the 30-year fixed rate decreasing to 6.77 percent, its lowest level in three months,” says Joel Kan, vice president and deputy chief economist for the MBA, in a statement. “After adjusting for the July 4th holiday, purchase applications increased to the highest level of activity since February 2023 and remained above year-ago levels.”
“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” Kan adds. “The average loan size on a purchase application, at $432,600, was at its lowest since January 2025. The refinance index also increased over the week, with VA refinances in particular up 32 percent.”
The refinance share of mortgage activity decreased to 40.0% of total applications, down from 40.1% the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7.7% of total applications.
Photo: Jungwoo Hong