The average 30-year mortgage rate landed at 6.92% last week, leading to a third week of declines in mortgage applications this past week, but the continuing steadiness of average rates holding between 6.8% and 7% for several weeks is positive news overall for annual home-purchase application activity.
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending May 30, the Market Composite Index (a measure of mortgage loan application volume) decreased 3.9% from the previous week’s 1.2% decrease. On an unadjusted basis, the Index decreased 15% compared with the previous week.
“Most mortgage rates moved lower last week, with the 30-year fixed rate declining to 6.92% and staying in the 6.8% to 7% range since April,” said Joel Kan, MBA’s vice president and deputy chief economist. “Mortgage applications decreased over the week but continue to exhibit annual gains, with purchase applications running 18% ahead of last year’s place.”
MBA reported that the Refinance Index decreased 4% from the previous week and was 42% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 4% from one week earlier. The unadjusted Purchase Index decreased 15% compared with the previous week and was 18% higher than the same week one year ago.
The refinance share of mortgage activity increased to 35.2% of total applications from 34.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications, MBA reported.
Added Kan, “Government purchase applications were little changed over the week driven by a slight increase in FHA purchase applications. Refinance activity fell across both conventional and government segments and the overall average refinance loan size was the smallest since July 2024, as potential borrowers hold out for larger rate drops.”
For this week’s full report, click here.
