Weekly mortgage demand stalls along with interest rates, but rates are now moving higher again.

• Refinance applications rose 2% for the week but remained 18% lower year-over-year, with average refinance loan size dropping to $282,200, the lowest since June 2025
• Purchase applications fell 2% for the week and were 3% lower than the same week last year as affordability challenges resurface
• The 30-year fixed mortgage rate remained unchanged at 6.77% with conforming loan balances up to $832,750, though rates began ticking higher again at the start of the following week

Summary

Key Figures:

• 30-year fixed-rate mortgage rates held steady at 6.77% for conforming loans ($832,750 or less)
• Points decreased to 0.65 from 0.67 for loans with 20% down payment
• Total mortgage application volume fell 0.4% week-over-week

Mortgage Activity:

• Refinance applications rose 2% for the week but remained 18% lower year-over-year
• Purchase applications declined 2% weekly and were down 3% versus the prior year
• Average refinance loan size dropped to $282,200, the lowest level since June 2025

Market Implications:

Stagnant mortgage rates provided little incentive for borrower activity, with overall application volume remaining essentially flat. The declining average loan size on refinances suggests borrowers with larger mortgages are reluctant to refinance at current elevated rates.

Joel Kan, MBA's deputy chief economist, noted that borrowers with larger loan balances "remain less likely to refinance with rates at these higher levels." Affordability challenges have intensified as a barrier to homebuying, with higher mortgage rates significantly impacting monthly payments and prompting potential buyers to delay purchase decisions.

The housing market faces headwinds from both elevated mortgage rates hovering at the higher end of recent ranges and broader economic uncertainty. Mortgage News Daily reported rates turned slightly higher again at the start of the following week, suggesting continued pressure on housing demand. The combination of affordability concerns and rate volatility continues to constrain both the purchase and refinance markets year-over-year.