Higher Mortgage Rates Push Applications Lower After Holiday Week
Refinance demand rose 4% as FHA and VA loans led gains, even as purchase applications fell 7%, the Mortgage Bankers Association said.
- On Wednesday, the Mortgage Bankers Association reported total mortgage application volume dropped 2.7% last week as the average 30-year fixed-rate mortgage climbed to 6.65%, the highest level since August 2025.
- Matthew Graham, chief operating officer at Mortgage News Daily, attributed the spike to July's uptick in fuel prices, which fueled inflation expectations and lifted Treasury note yields.
- Purchase applications fell 7% last week and trailed last year's pace by 2%, while refinance applications rose 4%, comprising 43.2% of total mortgage activity.
- During Congress testimony on Tuesday, Fed Chairman Kevin Warsh identified the housing market as a weak spot, noting elevated 30-year rates stem from inflation exceeding the Fed's objectives.
- Prospective buyers face a difficult market squeezed by elevated home prices and a thin supply of affordable listings, limiting demand despite refinance activity rebounding.
13 Articles
13 Articles
Higher mortgage rates push applications lower after holiday week
Mortgage applications fell last week as borrowing costs increased, with the average rate on a 30-year fixed mortgage reaching its highest level in nearly a year, according to the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey for the week ending July 10, 2026. Last week’s results included an adjustment for the Fourth of July holiday. On an unadjusted basis, the index increased 8% compared with the previous week. The ref…
Rising Mortgage Rates Slow Homebuyer Demand
Mortgage rates climbed to their highest level since August 2025 last week, slowing demand from homebuyers while refinance activity posted modest gains, according to data released by the Mortgage Bankers Association. The average interest rate for a 30-year fixed mortgage increased to 6.65%, up from 6.58% a week earlier. Total mortgage applications fell 2.7% from the previous week, while applications to purchase homes declined 7% and were 2% lower…
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