In response to the largest drop in mortgage rates seen since March, mortgage applications continued to grow last week, with the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey reporting a 9.4% jump.

“After adjusting for the July 4th holiday, purchase applications increased to the highest level of activity since February 2023 and remained above year-ago levels,” said Joel Kan, MBA’s VP and deputy chief economist.

The seasonally adjusted Purchase Index increased 9% from one week earlier. The unadjusted Purchase Index decreased 13% compared with the previous week and was 25 % higher than the same week one year ago.

The Refinance Index increased 9% from the previous week and was 56% higher than the same week one year ago. The refinance share of mortgage activity decreased to 40.0 % of total applications from 40.1% the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 7.7% of total applications. The FHA share of total applications decreased to 17.9% from 18.2 % the week prior. The VA share of total applications increased to 13.0% from 12% the week prior. The USDA share of total applications increased to 0.6% from 0.5% the week prior.

“Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth,” added Kan. “The average loan size on a purchase application, at $432,600, was at its lowest since January 2025.”

For the full report, click here.

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