The average rate for 30-year fixed US mortgages fell to 6.48% as of June 5, down from 6.53%, according to Freddie Mac data [1]. The Mortgage Bankers Association (MBA) reported a similar decline, with their average rate slipping to 6.57% on June 3 from 6.65% the prior week [2]. The slight difference in reported averages reflects the different reporting dates.
Mortgage application volume declined 2.5% week-over-week, driven by decreases in both home purchase and refinance requests [2]. Applications to purchase a home fell 3%, marking the slowest pace since April 2026 [2]. Refinance applications dropped 2% week-over-week but remain 20% higher than the same week last year, indicating some homeowner interest in locking rates historically higher than recent years [2].
High borrowing costs and economic concerns related to the conflict in the Middle East have pressured housing market activity, reducing buyer willingness and increasing seller inventory [1]. In April, 5.8% of US home listings were withdrawn, tying the highest share since March 2020 [1]. Redfin agent Patricia Ammann said, "Buyers know they have negotiating power, often offering under the asking price. But some sellers just won’t budge," highlighting the tension between buyers and sellers in the market [1].
The modest mortgage rate declines partly reflect market expectations of easing energy prices as tensions in the Middle East evolve. MBA vice president Joel Kan said, "The prospect of easing energy prices given the evolving situation in the Middle East brought mortgage rates slightly lower last week" [2]. Mortgage News Daily COO Matthew Graham noted that bond markets remained stable despite Iran war news and typical oil price volatility, supporting the recent rate stability [2].
Demand for adjustable-rate mortgages decreased as borrowers preferred fixed rates amid relatively high interest rates [2]. The reduced appetite for adjustable products suggests caution among consumers amid ongoing economic uncertainty.
Freddie Mac’s June 5 mortgage rate update and MBA’s June 3 report provide the latest snapshots of a housing market grappling with affordability and geopolitical risk. Weekly mortgage application and home purchase volume data will continue to offer insight as the market responds in coming weeks. [1, 2]
