Mortgage activity saw a slight increase for the week ending June 26, 2026, according to the Mortgage Bankers Association. A minor dip in interest rates helped fuel growth in home-purchase applications, which successfully offset a marginal decline in refinancing activity, signaling continued resilience in the housing market. ### Key Takeaways * The Market Composite Index rose 0.04% week over week. * Purchase applications increased by 1% compared to the previous week. * Refinance applications saw a slight decline of 1%. * The 30-year fixed-rate mortgage average slid to 6.57%. ### Market performance analysis The Mortgage Bankers Association reported that overall mortgage application volume nudged upward despite varied performance across loan types. The consistent increase in purchase activity indicates that prospective homebuyers are finding favorable conditions. Data shows: | Index | Weekly Change | | :— | :— | | Market Composite | +0.04% | | Purchase Index | +1.0% | | Refinance Index | -1.0% | This upward trend in purchase applications has been sustained for nearly three months, reflecting a market that is benefiting from broader home inventory options and a cooling in the rapid pace of home-price growth. ### Interest rate shifts and buyer behavior Mortgage interest rates saw a brief decline as oil prices dropped, leading to more competitive lending offers. The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances decreased to 6.57% from 6.59%. Similarly, FHA-backed 30-year fixed-rate loans saw rates dip to 6.00% from 6.02%. Meanwhile, the usage of adjustable-rate mortgages (ARMs) dropped to less than 8% of applications, reaching its lowest share since January. Experts suggest this trend is influenced by the current yield curve, which continues to feature higher short-term rates, encouraging borrowers to lean toward fixed-rate products.
