Mortgage demand drops for the third straight week

Plus: Trump to realtors: ‘what you do is very beautiful’

June 06, 2025

😄 Welcome back. Let's Friday together. Today’s newsletter is a 2.5-minute read.

Disclaimer: Average mortgage rates as of June 05, 2025. © MND Daily Rate Index.

1. Mortgage demand drops for the third straight week

Mortgage rates fell slightly last week, but that did nothing to spur mortgage demand. Total mortgage application volume dropped 3.9% last week compared with the previous week, according to the MBA’s seasonally adjusted index.

  • Applications to refinance a home loan declined 4% for the week but were 42% higher than the same week one year ago.

  • Applications for a mortgage to purchase a home fell 4% for the week, but were 18% higher than the same week one year ago.

“Mortgage applications fell this week but are still up 18% from last year. FHA purchases rose slightly, while refinancing dropped and hit the smallest average loan size since July 2024, as borrowers wait for better rates.” said Joel Kan, MBA’s Vice President.

2. Trump to realtors: ‘what you do is very beautiful’

President Donald Trump addressed the NAR midyear conference via a video message, praising agents for advancing homeownership and promoting his “One Big Beautiful Bill.”

Calling Realtors' work “very beautiful,” Trump highlighted efforts to tame inflation and revive housing affordability. He touted the bill—passed by a narrow 215–214 House vote—for preserving key real estate tax breaks, including deductions for mortgage interest, business income, SALT, and 1031 exchanges.

“A very special hello to everyone at the National Association of Realtors. I love people [who] are in the real estate business. I have a little bit of a proclivity for it,” Trump said. “You play a vital role in helping Americans achieve the dream of homeownership, and together we will make the American Dream more attainable than ever before.”

Related: Four reasons Musk attacked Trump's "big beautiful bill"

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3. More Nuggets

🏘️ The Housing market was supposed to recover this year. What happened? (NYT)

🚨 NAR overturns 'no-commingling' rule. (BAM)

🔥 Florida insurers profitable for the first time in eight years. (InsuranceJournal)

🔊 NAR board approves changes to hate speech code. (CAR)

⚾️ Justin Ishbia strikes deal to buy Chicago White Sox. (HousingWire)

4. Charted: Change in active housing inventory for sale between May 2024 and May 2025

National active listings are on the rise (+31.5% between May 2024 and May 2025). This indicates that homebuyers have gained some leverage in many parts of the country over the past year.

Click here to view an interactive version of the year-over-year map above

5. Rocket-Redfin deal approved by shareholders

Redfin shareholders have approved the company’s $1.75 billion acquisition by Rocket Companies, according to preliminary results from a special meeting held Wednesday. Rocket executives expect the deal to close as early as this quarter.

Despite shareholder approval, the merger has drawn scrutiny from lawmakers. Five Senate Democrats, including Elizabeth Warren, Bernie Sanders, and Cory Booker, criticized the transaction and questioned why the Federal Trade Commission chose not to intervene.

“In the midst of a housing affordability crisis, these deals would consolidate the second-largest mortgage originator, the largest mortgage servicer, and the third-most-visited real estate brokerage site in the U.S.,” they wrote. “This vertically integrated giant could reduce competition and drive up costs for American families.”

6. CFPB proposal could rescind loan officer pay rule

The CFPB has sent proposed changes to loan originator compensation and mortgage servicing rules to the Office of Management and Budget for review. One item—potential rescission of the LO Comp rule—has sparked confusion and concern across the industry.

“If the CFPB is considering a full rescission, that could be chaos,” said Colgate Selden, a former CFPB attorney. Lenders are unsure whether the rule would revert to the old Fed version or vanish entirely, which could upend how brokers and lenders handle fees and compensation.

Servicing rules are also on the table, though less detail is available. The mortgage industry is pushing for updates but wants time to weigh in before anything becomes final.

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☀️ You’re all caught up. See you on Monday!

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