Mortgage Application Activity Up 9.4%

Mortgage application activity shot up like a firework during the week ending July 4, according to data from the Mortgage Bankers Association (MBA).

The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 9.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index dropped by 13% compared with the previous week.

The seasonally adjusted Purchase Index increased 9% from one week earlier but the unadjusted index decreased 13% – the latter was also 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, although the refinance share of mortgage activity dipped slight to 40.0% of total applications from 40.1% the previous week.

Among the federal programs, the FHA share of total applications decreased to 17.9% from 18.2% the week prior while the VA share of total applications increased to 13.0% from 12.0% and the USDA share of total applications inched up to 0.6% from 0.5%.

“After adjusting for the July 4 holiday, purchase applications increased to the highest level of activity since February 2023 and remained above year-ago levels,” said Joel Kan, MBA’s vice president and deputy chief economist. “Homebuyer demand is being fueled by increasing housing inventory and moderating home-price growth. The average loan size on a purchase application, at $432,600, was at its lowest since January 2025. The refinance index also increased over the week, with VA refinances in particular up 32%.”