For sale signs are posted in front of condominiums for sale on July 9, 2026 in Los Angeles, California. <\/p>\n
Justin Sullivan | Getty Images<\/p>\n
Mortgage rates rose last week to the highest level since August 2025, and that caused homebuyer demand for loans to pull back. Refinance demand, however, moved higher.<\/p>\n
Total mortgage application volume dropped 2.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. <\/p>\n
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.65% from 6.58% last week, with points rising to 0.67 from 0.64, including the origination fee, for loans with a 20% down payment. <\/p>\n
Applications for a mortgage to purchase a home fell 7% from the previous week and were 2% lower than the same week one year ago. Buyers are still contending with high home prices as well as lean supply of affordable homes for sale.<\/p>\n
Applications to refinance a home loan increased 4% for the week and were 7% higher than the same week one year ago. Last year, rates were just 17 basis points higher, so there is not a lot of incentive for most borrowers to refinance. The percentage gains are likely because there is such a small pool to begin with, and some borrowers are doing cash-out refinances to take advantage of big gains in home equity. <\/p>\n
“Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release.<\/p>\n
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