Rates declined modestly across loan types, helping support application activity. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) dropped to 6.77%, down from 6.79% the previous week.
According to Optimal Blue, rate locks edged up 2% in June compared to May, driven mainly by refinance demand. Rate/term refinance locks jumped 17.4%, while cash-out refis rose 8.1%. Purchase locks remained flat.
The average interest rate for conforming mortgage locks in June was 6.67%, down 17 basis points from May. FHA loan lock rates dipped slightly by 6 basis points to 6.47%.
Purchase mortgage applications rose to their highest level of activity since February 2023.
MBA’s seasonally adjusted purchase index climbed 9% from the previous week, while the unadjusted purchase index was 25% higher than the same week in 2024.