Mortgage Applications Inch Higher

For the week ending June 20, 2025, the Mortgage Bankers Association reported that U.S. mortgage application volume rose 1.2% on a seasonally adjusted basis, though it declined 10.0% unadjusted due to the Juneteenth holiday. The Refinance Index rose 3.0% week-over-week and was 29.0% higher than a year ago, while the Purchase Index dipped 0.4% seasonally adjusted and fell 11.0% unadjusted but remained 12.0% higher year-over-year.

MBA’s Deputy Chief Economist Joel Kan noted that despite slightly lower Treasury yields following geopolitical tensions and the latest Fed meeting, mortgage rates edged up, with the 30-year fixed rate reaching 6.88%. Application growth was driven by FHA refinances, while conventional applications declined. The average loan size for purchase applications dropped to $436,300—the lowest since January 2025.