Mortgage applications decreased 2.2% from one week earlier, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending July 3. This week’s results include an adjustment for the Fourth of July holiday.
On an unadjusted basis, the index decreased 12% compared with the previous week.
The adjusted refinance index decreased 4% from the previous week and was 8% higher unadjusted than the same week one year ago. The seasonally adjusted purchase index decreased 1% from last week. The unadjusted purchase index decreased 11% compared with the previous week and was 5% higher than the same week one year ago.
“Mortgage application volume was little changed during the week of the nation’s 250th Independence Day celebration, as the 30-year fixed rate increased slightly to 6.58%,” Mike Fratantoni, MBA’s senior vice president and chief economist, said in a statement.
“After adjusting for the Independence Day holiday, government purchase volume increased modestly, led by a 5% gain in VA purchase applications, while conventional purchase activity declined. Refinance application volume was down 4%, as homeowners saw little enticement to act with rates still elevated.”
The refinance share of mortgage activity decreased to 40.6% of total applications, down from 41.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.8% of total applications.
By product, the Federal Housing Administration (FHA) share of total applications decreased to 16.4%, down from 16.9% a week earlier. The U.S. Department of Veterans Affairs (VA) share increased to 13%, up from 12.9%, and the U.S. Department of Agriculture (USDA) share increased to 0.5%, up from 0.4%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 6.58%, up from 6.57%, while the average rate for 30-year fixed mortgages with jumbo loan balances decreased to 6.50%, down from 6.52%.
The average contract interest rate for 30-year fixed loans backed by the FHA increased to 6.28%, up from 6.27%, while the rate for 15-year fixed mortgages decreased to 5.99%, down from 6.00%. The average rate for 5/1 ARMs increased to 5.84%, up from 5.79%.
Xactus Mortgage Intent Index
Xactus’s Mortgage Intent Index — which analyzes aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform — declined to a reading of 110.9 for the week of July 3.
“The Xactus Mortgage Intent Index declined about 10% week-over-week due to the Fourth of July holiday,” said Thomas Lloyd, Xactus’ chief strategy officer. “Even so, the unadjusted index surpassed the same week in 2025 by roughly 1.56% — a positive sign after two weeks of year-over-year declines.
“With a slight dip in mortgage interest rates, the index turned positive year-over-year, underscoring the pent-up demand and potential tailwinds if rates decline further,” he added.
