Mortgage Demand Stalls Amid Stable Rates; Refinances Rise Slightly
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances remained unchanged at 6.77% last week, according to the Mortgage Bankers Association (MBA). Total mortgage application volume was essentially flat from the previous week but down slightly year-over-year. Refinance applications rose by 2%, though they were still 18% lower than a year ago when rates were marginally lower. Purchase applications fell 2% for the week and are now 3% below levels seen in the same period last year, reflecting ongoing affordability challenges due to higher mortgage rates. Joel Kan of MBA noted that borrowers with larger loan sizes remain less likely to refinance at current rate levels, as average refinanced loan size dropped to $282,200—the lowest since June 2025. Mortgage rates began rising slightly again this week according to a separate survey from Mortgage News Daily. The lack of movement in mortgage demand and stable interest rates suggest continued economic uncertainty is affecting both homebuyers and current homeowners.
Topics: home purchase applications mortgage rates refinancing activity