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- Mortgage applications rise by 11% as buyers make a last spring push
Mortgage applications rise by 11% as buyers make a last spring push
Plus: Lock-in effect drives surge in home equity lending
📰 Strap in, we've got news. Today’s edition is 662 words, a 2.5-minute read.
Disclaimer: Average mortgage rates as of June 09, 2026. © MND Daily Rate Index.
1. Mortgage applications rise by 11% as buyers make a last spring push
Total application volume jumped 10.8% last week despite the 30-year fixed rate ticking up slightly to 6.60%.
Refi apps rose 15% for the week and are 20% above year-ago levels.
Purchase apps gained 7% and are 4% above last year.
MBA's Mike Fratantoni said rate volatility tied to Iran war news created windows where borrowers could lock at somewhat lower rates during the week, which may have driven the burst of activity. ARM demand also picked up, with the 5-year ARM averaging 5.96% and ARMs making up 8.6% of total applications.
Mortgage rates were flat to start this week but could move more noticeably with the release of the government’s monthly consumer price index.
2. Lock-in effect drives surge in home equity lending
Homeowners pulled $47 billion in equity in Q1 2026, the highest first-quarter total since 2021.
Second-lien loans hit their strongest Q1 volume in nearly 20 years, with 248,000 borrowers tapping HELOCs and second liens for $25 billion, while 234,000 did cash-out refis for $22 billion.
The reason is simple: borrowers who locked in rates in 2020-2022 aren't touching their first mortgages. That cohort made up nearly two-thirds of all second-lien originations in Q1.
“The housing market continues to be defined by the lock-in effect,” Andy Walden, head of mortgage and housing market research at ICE, said in a statement. “Millions of homeowners are sitting on first mortgages with rates well below current market levels, making second liens and HELOCs an attractive way to access equity without giving up those loans.”
3. More Nuggets
🏘️ Trump says US still weighing share sale for Fannie, Freddie. (Bloomberg)
🖨️ California mortgage servicer settles for $4.6M over pandemic foreclosure violations. (Insurance Journal)
🆕 MBA launches forum for reverse mortgages, senior lending. (HousingWire)
💼 Senate Dems introduce bill to fully restore CFPB funding. (Senate.gov)
💭 HUD seeks feedback on FHA minimum property requirements. (FederalRegister)
🤝 First Federal Bank sells third-party mortgage origination unit. (PR Newswire)
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4. Mortgage credit availability edges higher in May
MBA's Mortgage Credit Availability Index rose 0.1% to 108.0 in May, with jumbo credit leading the modest gain at 0.3%, driven by expanded ARM offerings as lenders target higher-income borrowers who are less rate-sensitive.
Government loan programs were unchanged and conforming credit was flat.
The subdued movement reflects lender caution in a market defined by 9-month rate highs, weak refinance demand, and affordability-constrained purchase activity. Despite pressure to loosen standards, most lenders held their program offerings largely stable through the month.
"With rates at 9-month highs and economic uncertainty elevated, lenders held their program offerings fairly stable — though jumbo credit ticked up slightly, mostly from ARM loan offerings." — Joel Kan, deputy chief economist.
5. Judge orders UWM’s Mat Ishbia to sit for deposition
A federal judge has ordered UWM CEO Mat Ishbia to submit to a deposition of up to four hours within 30 days in its lawsuit against Atlantic Trust Mortgage — a Florida broker shop UWM sued in 2024 for allegedly violating its All-In Initiative by sending 71 loans to competing lenders, resulting in $335,000 in claimed damages.
The court also held UWM in civil contempt after the company twice defied previous orders to produce Ishbia, ordering it to pay Atlantic Trust's attorney fees.
UWM had proposed substituting its chief legal counsel instead — Atlantic Trust rejected it, arguing Ishbia has unique personal knowledge of how the All-In Initiative and its liquidated damages provision were created.
☀️ You’re all caught up. See you on Friday!
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