The roller-coaster effect on home purchase applications continued this week, which saw a slight dip after a big surge the previous week. Mortgage experts continue to point to economic volatility as the reason for the ongoing fluctuations.
According to the latest Weekly Mortgage Applications Survey from the Mortgage Bankers Association (MBA) for the week ending June 13, the Market Composite Index (a measure of mortgage loan application volume) decreased 2.6% from the previous week’s 12.5% increase. On an unadjusted basis, the Index decreased 4% compared with the previous week.
“Mortgage rates decreased last week, driven by financial market volatility caused by current geopolitical conflict and ongoing tariff uncertainties. The 30-year fixed rate decreased to 6.84%, its lowest level since April,” said Joel Kan, MBA’s vice president and deputy chief economist. “Even with lower average mortgage rates, applications declined over the week as ongoing economic uncertainty weighed on potential homebuyers’ purchase decisions.”
The Refinance Index decreased 2% from the previous week and was 25% higher than the same week one year ago, MBA reported. The seasonally adjusted Purchase Index decreased 3% from one week earlier. The unadjusted Purchase Index decreased 5% compared with the previous week and was 14% higher than the same week one year ago.
The refinance share of mortgage activity increased to 37.3% of total applications from 36.7% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
Kan noted that refinance activity declined for both conventional and government borrowers, but VA applications, bucked the trend with a 2% increase in purchase applications and a slight increase in refinance applications.
“Additionally, the overall average loan size at $380,200, was the lowest since January 2025,” Kan added.
For this week’s full report, click here.
