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Weekly Mortgage Applications Rise Despite Higher Rates, MBA Says

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Weekly Mortgage Applications Rise Despite Higher Rates, MBA Says

Mortgage applications in the US increased last week as potential homebuyers returned to the market despite rising interest rates, the Mortgage Bankers Association said Wednesday.

The market composite index, which measures loan application volume, rose 1.7% for the week through Friday on a seasonally adjusted basis. Without adjustment, the index increased 2%.

The seasonally adjusted purchase index rose 4% on a weekly basis, according to the report.

"Purchase applications were higher over the week and 7% ahead of last year's pace, with all loan types showing increases in purchase activity, as potential homebuyers shrugged off the current economic and mortgage rate uncertainties and returned to the market," Joel Kan, the MBA's deputy chief economist, said in a statement.

US President Donald Trump recently rejected Iran's counter offer to end the war, dimming prospects of an imminent deal between the two sides.

The average fixed rate for 30-year mortgages with conforming loan balances of $832,750 or less increased to 6.46% from 6.45% a week ago. That's the highest level in five weeks, Kan said.

For loan balances higher than that amount, the rate rose to 6.48% from 6.47%. For 15-year loans, the rate was unchanged at 5.83%, according to the report.

Fixed-rate mortgages with 30-year terms backed by the Federal Housing Administration increased to 6.16% from 6.12% the week before, the MBA said Wednesday. The share of FHA loans, which are often used by first-time home buyers and can involve smaller down payments, grew to 17.9% of total applications from 17.7%.

The refinance index dropped 1% sequentially.

"Refinance applications declined slightly, led by conventional and (Veterans Affairs) refinancings, and accounted for a little more than 40% of applications last week, the lowest share since July 2025," Kan said.

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