More Homes, Lower Rates: June Brings a Boost to Mortgage Activity

June brought a wave of encouraging trends for buyers and homeowners alike. Mortgage applications rose, interest rates ticked down slightly, and home inventory continued to climb, all signs of a shifting market that could benefit those ready to make a move.

Mortgage applications on the rise

According to the Mortgage Bankers Association, mortgage application volume climbed 5.4% from May and is up 21.1% compared to June 2024. Purchase applications increased 3.7% month-over-month, while refinances jumped 6.5%.

This activity was supported by a modest drop in mortgage rates. The average 30-year fixed rate eased to 6.86%, down 4 basis points from May and 12 basis points from a year ago. Meanwhile, average loan sizes continued to decline, reflecting both affordability constraints and more cautious borrowing.

Inventory keeps growing

Buyers had more options in June, as the number of actively listed homes rose nearly 29% year-over-year, marking the 20th straight month of inventory growth. New listings were also up 6.2%, and for the second month in a row, total homes for sale topped 1 million, surpassing 2020 levels, an important milestone in the post-pandemic market recovery.

However, while inventory is improving, it still sits about 13% below typical 2017–2019 levels, suggesting there’s more ground to cover before fully normalizing.

Price pressures and builder strategies

With more existing homes hitting the market and sales staying relatively flat (2024 saw the lowest home sales since 1995), prices are feeling the squeeze. Builders, facing competition from resale inventory and slower buyer traffic, are increasingly adjusting. In June, 37% of builders cut prices, the highest share since this was first tracked in 2022. The average cut remained at 5%, while 62% of builders offered incentives to help move inventory.

As NAHB Chief Economist Robert Dietz noted, “Rising inventory levels and buyers waiting for affordability to improve are putting downward pressure on prices,” prompting forecasts of fewer new single-family starts in 2025.

Bottom line:

For buyers, more homes and slightly lower rates offer fresh opportunities. For sellers and builders, pricing and incentives are key tools in a market that’s working through higher costs and cautious demand.

At Pacific Direct Mortgage in Santa Rosa, we help California buyers, homeowners, and real estate investors secure the Hard Money financing they need, fast. Whether you’re buying, refinancing, or tackling a project that traditional banks won’t touch, we’re here to get you to the finish line with speed and confidence.

If you’re exploring your options or need a lender you can rely on, reach out. Let’s discuss how we can help make your next home purchase or investment a success.

Husband & Wife Team Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401 Ken: CA DRE Broker #01858042 / NMLS #1221130 Ari: CA DRE #01858152 / NMLS #2170867 Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!