The volume of mortgage applications in the US rose by 2.7% from the previous week in the last week of June 2025, extending the 1.1% increase in the earlier period, according to data compiled by the Mortgage Bankers Association. The increase was consistent with another drop in benchmark mortgage rates, with that on the 30-year fixed mortgage dropping 9bps to a near three-month low of 6.79%. Benchmark borrowing costs moved in tandem with longer-dated Treasury yields amid lower concerns of high inflation and tariffs. Applications for a contract to refinance a mortgage, which is more sensitive to short term changes in interest rates, surged by 7%. In turn, applications for a mortgage to purchase a new home were loosely unchanged.