Mortgages in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey rose 0.04% in the week ending June 26, even as the mix shifted away from adjustable-rate borrowing. ARM loans fell to 7.6% of total applications, the lowest share since January, according to Joel Kan.
Mortgage rates eased slightly last week as oil prices declined, and Kan said that pushed applications modestly higher. The data show a small gain that came from purchase demand, not from refinances, which slipped again.
Joel Kan on 7.6%
0.04% was the seasonally adjusted increase in the The Market Composite Index from one week earlier, while the unadjusted index rose 11%. The Refinance Index fell 1% on the week, though it was still 9% above the same week one year ago. That left refinancing with 41.4% of total activity, down from 41.5% the prior week.
1% was the rise in the seasonally adjusted Purchase Index, and the unadjusted Purchase Index climbed 11% from the previous week and 3% from a year earlier. Kan said purchase applications remain ahead of 2025’s pace and have shown year-over-year growth for almost three months as prospective homebuyers find opportunities in markets with ample inventory and easing home-price growth.
Mortgage Mix Shifts
7.6% was the ARM share of activity, down from 12.9% for VA applications, 16.9% for FHA applications, and 0.4% for USDA applications. The refinance share slipped, VA’s share rose to 12.9% from 12.3%, FHA’s share fell to 16.9% from 17.9%, and USDA’s share fell to 0.4% from 0.5%.
6.57% was the average contract rate for 30-year fixed-rate mortgages with conforming loan balances, down from 6.59%; the 15-year fixed-rate average fell to 6.00% from 6.02%. The 5/1 ARM rate moved higher to 5.79% from 5.68%, leaving less rate advantage for borrowers comparing adjustable loans with fixed options. If that gap stays narrow, the weekly numbers suggest borrowers may keep favoring fixed-rate debt even when overall applications edge up.
