Mortgage application volume saw a marginal increase during the week ending June 19, demonstrating unexpected resilience despite a more hawkish tone from the Federal Reserve. While borrowing costs remain elevated and persistent inflation concerns linger, total application activity currently sits 8% above the levels recorded during the same period last year.### Key takeaways
- The MBA Market Composite Index rose 1% week-over-week.
- The Refinance Index saw a 3% increase.
- The Purchase Index experienced a modest decline of 1%.
- 30-year fixed-rate mortgages averaged 6.59%.
- Annual application volume remains 8% higher than in 2025.
### Market performance amidst policy shifts Following the Federal Reserve’s June meeting, officials indicated that future rate hikes may be necessary to combat ongoing inflationary pressures. Despite this uncertainty, the housing market has shown a notable tenacity. Mortgage Bankers Association Chief Economist Mike Fratantoni noted that while purchase applications edged lower recently, the willingness of borrowers to navigate the current climate keeps overall volume robust. This reflects a persistent demand for homeownership that continues to outweigh many of the macroeconomic headwinds currently facing the mortgage industry.### Current mortgage rate landscape Mortgage rates remained largely stagnant throughout the third week of June, providing a brief period of stability for prospective buyers looking to lock in conventional loans. The data indicates the following average contract interest rates:
| Loan Type | Interest Rate |
| 30-Year Fixed | 6.59% |
| FHA-Backed 30-Year | 6.25% |
Buyers relying on FHA-backed loans saw no change in their average rate, which held steady at 6.25%. This relative stability in rates, paired with a significant increase in refinance activity, suggests that many homeowners are actively looking for alternatives to manage their long-term debt as the economic outlook remains fluid.