US Mortgage Applications See Significant Increase

In a surprising turn of events, mortgage applications in the United States soared by 9.4% during the seven days leading up to July 4. This data, released by the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey on Wednesday, highlights a vibrant recovery in the housing market.

Key Indexes Show Promising Growth

The Market Index climbed to 281.6 from the previous week's 257.5, marking a 9.4% increase. Similarly, the Purchase Index rose to 180.9, up 9% from 165.3, and the Refinance Index also saw a 9% increase, reaching 829.3 from 759.7. Notably, the average contract interest rate for 30-year fixed-rate mortgages slightly decreased from 6.79% to 6.77%.

Expert Insights on the Housing Demand

Joel Kan, MBA's Vice President and Deputy Chief Economist, pointed out, "After adjusting for the July 4th holiday, purchase applications reached their highest level since February 2023, surpassing year-ago levels. This surge is driven by growing housing inventory and moderated home-price growth. The average loan size for purchase applications dropped to $432,600, the lowest since January 2025."