On an unadjusted basis, the index decreased 4% compared with the previous week.
The refinance index decreased 2% from the previous week and was 25% 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 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.
“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.”
Added Kan, “Refinance activity declined for both conventional and government borrowers. VA applications, however, 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.”
The adjustable-rate mortgage (ARM) share of activity decreased to 7.1% of total applications.
By product, the FHA share of total applications decreased to 17.8% from 18.0% the week prior. The VA share of total applications increased to 12.1% from 11.6% the week prior, and the U.S. Department of Agriculture (USDA) share of total applications remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.84% from 6.93%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) decreased to 6.81% from 6.93%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 6.57% from 6.60%. Fifteen-year fixed-rate mortgages saw rates decrease to 6.14% from 6.16%, while the average contract interest rate for 5/1 ARMs decreased to 6.10% from 6.22%.
