The Mortgage Bankers Association is attributing an increase in home-purchase applications this week to mortgage rates edging down slightly following a decline in oil prices and easing tensions in the Middle East. 

The latest Market Composite Index from the MBA—its measure of mortgage loan activity volume and includes purchases and refinances—shows mortgage application activity increasing this week 0.04% on a seasonally adjusted basis from an increase of 1.0% last week. On an unadjusted basis, the Index decreased 11% compared with the previous week.

The average 30-year mortgage rate is still hovering in the mid-6% range, increasing to 6.49% last week from 6.47% the previous week, and was up to 6.54% as of this writing.

“Mortgage rates eased slightly last week as oil prices declined,” said Joel Kan, MBA’s vice president and deputy chief economist. “As a result, mortgage applications increased modestly, with an uptick in purchase activity offsetting a smaller decline in refinances.

“Purchase applications remain ahead of 2025’s pace and have exhibited year-over-year growth for almost three months, as prospective homebuyers are finding opportunities in markets with ample inventory and easing home-price growth,” Kan added. “ARM loans accounted for less than 8 percent of applications, the lowest share since January, as the yield curve continues to flatten with relatively higher short-term rates.”

MBA’s Refinance Index decreased 1% from the previous week and was 9% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index increased 11% compared with the previous week and was 3% higher than the same week one year ago, according to the report.

The refinance share of mortgage activity decreased to 41.4% of total applications from 41.5% the previous week, MBA reported. The adjustable-rate mortgage (ARM) share of activity decreased to 7.6% of total applications.

Government-backed loans were mixed again this week: The FHA share of total applications decreased to 16.9% from 17.9% the week prior. The VA share of total applications increased to 12.9% from 12.3% the week prior, and the USDA share of total applications decreased to 0.4% from 0.5% the week prior.

To view the full report, click here.

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