Mortgage Applications Slip Despite Lower Rates

Mortgage application activity declined modestly last week despite a drop in rates, according to the Mortgage Bankers Association’s (MBA) latest survey. The Composite Index fell 2.6% on a seasonally adjusted basis for the week ending June 13, with both purchase and refinance activity posting week-over-week declines. “Even with lower average mortgage rates, applications declined over the week as ongoing economic uncertainty weighed on potential homebuyers’ purchase decisions,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. Refinance applications were down 2% from the prior week but remain 25% higher than the same week last year. Purchase applications fell 3% on a seasonally adjusted basis but are still 14% above 2024 levels. These declines come after a brief rebound in early June and underscore the fragile sentiment in the housing market. The average 30-year fixed rate decreased to 6.84%, the lowest level since April, with modest declines across most other loan types as well. Mortgage Rate Summary: 30yr Fixed: 6.84% (−0.09) | Points: 0.66 (+0.02) 15yr Fixed: 6.14% (−0.02) | Points: 0.70 (+0.04) Jumbo 30yr: 6.81% (−0.12) | Points: 0.63 (no change) FHA: 6.57% (−0.03) | Points: 0.90 (+0.02) 5/1 ARM: 6.10% (−0.12) | Points: 0.57 (+0.24)