US mortgage applications recorded a 1.0 percent increase on a seasonally adjusted basis in the week ending 19 June 2026. This development was announced as part of the Mortgage Bankers Association's (MBA) “Weekly Mortgage Applications Survey”. The Refinance Index showed a decrease of 2 percent, while the Purchase Index increased by 2 percent. This indicates a divergent trend between new purchases and the refinancing of existing loans.
Joel Kan, the MBA’s Associate Vice President and Deputy Chief Economist, commented on the results. He noted that applications for purchase loans have risen for the second consecutive time in the first half of June. This is a positive signal for the housing market, particularly given recent interest rate fluctuations.
Development of Mortgage Interest Rates
Mortgage interest rates showed mixed developments during the week in question. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances (up to $766,550) rose from 7.03 percent to 7.07 percent. The effective rate increased from 7.24 percent to 7.28 percent. This suggests that lending conditions have become somewhat tighter for potential buyers.
In contrast, rates for jumbo loans (over $766,550) decreased. Here, the average contract rate fell from 7.05 percent to 6.99 percent, resulting in an effective rate of 7.16 percent compared to 7.22 percent the previous week. A slight decline was also observed for loans with lower credit sums. The average contract rate for 30-year fixed-rate mortgages with an FHA component reduced from 6.80 percent to 6.76 percent, with an effective rate of 7.04 percent.
The Refinancing and Purchase Market
The market share of refinancing activities slightly fell from 31.1 percent of total applications to 30.5 percent. The share of adjustable-rate mortgages (ARM) in the total number of applications also decreased from 6.8 percent to 6.6 percent. This reflects the continued preference for fixed-rate mortgages among borrowers, although ARM loan rates might develop more favourably.
- —The average contract rate for 15-year fixed-rate mortgages rose from 6.62 percent to 6.64 percent. The effective rate was 6.86 percent.
- —The average contract rate for 5/1 ARM loans fell from 6.56 percent to 6.43 percent. The effective rate was 6.64 percent.
- —The share of FHA loans decreased from 12.9 percent to 12.8 percent.
- —The VA share also reduced from 10.7 percent to 10.6 percent.
