The Mortgage Bankers Association reported that total mortgage application volume rose 10.8% for the week ending June 5, driven by gains in both refinance and purchase activity even as interest rates moved higher.

Refinance applications climbed 15% for the week and were 20% higher than the same week one year ago. Applications to purchase a home rose 7% week over week and were 4% higher compared with the same period last year. The MBA noted that last week's results included an adjustment for the Memorial Day holiday.

"Mortgage rates were volatile last week as news from the Middle East continues to drive markets," said Mike Fratantoni, MBA's senior vice president and chief economist, in a statement. "While the average rate was up slightly, there were opportunities where borrowers were seeing somewhat lower rates."

For conforming loan balances of $832,750 or less, the 30-year fixed rate edged up two basis points to 6.60%. The 15-year fixed rate increased to 5.99% from 5.93%. Adjustable-rate products also drew increased interest, with ARMs accounting for 8.6% of all applications and the five-year ARM averaging 5.96%, according to CNBC.

The refinance share of total mortgage activity increased to 40.2% from 38.0% the prior week.

The week's rebound follows a stretch of declining demand. Mortgage application volume had dropped 8.5% in the week ending May 28, when the 30-year fixed rate reached its highest level since August 2025. At that time, refinance applications had fallen 18% and purchase applications had slipped 0.4%, as elevated rates weighed on borrower demand.

Geopolitical uncertainty tied to the conflict in the Middle East has been a recurring factor shaping the rate environment in recent weeks. The upcoming release of the government's monthly consumer price index is another potential catalyst for rate swings, noting commentary from Matthew Graham, COO at Mortgage News Daily. "If the actual numbers come in much higher or lower than those forecasts, it could cause volatility for rates in either direction," Graham said.