Mortgage Rates Rise for Sixth Consecutive Week, Slowing Homebuyer and Refinance Activity
Mortgage rates continued to climb for the sixth consecutive week, reaching their highest level since November 2023. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose from 7.12% to 7.30%, and further increased to 7.58% on Tuesday according to a separate survey by Mortgage News Daily. This surge has significantly impacted mortgage demand, which is now at its lowest level in two years. Refinance activity was particularly hard hit, with applications dropping 9% for the week and falling 56% compared to the same period last year. Applications for home purchases also declined, down 4% weekly and 14% annually. Rising rates are compounded by increasing home prices; nationally, July saw a 1.9% annual increase in housing costs according to the S&P CoreLogic Case-Shiller index. Adjustable-rate mortgages (ARMs), which offer lower interest rates than fixed-rate loans, accounted for 10.3% of applications—the highest share since October 2025—indicating a shift toward riskier mortgage products as borrowers seek savings.
