Mortgage rates remained stable last week, with the average rate for a 30-year fixed mortgage holding at 6.77% for loans with conforming balances of $832,750 or less. This development offers little incentive for homebuyers and existing homeowners to engage with lenders or initiate any significant financial moves, as reported by the Mortgage Bankers Association (MBA).
According to the Mortgage Bankers Association (MBA), mortgage points decreased marginally to 0.65 from 0.67 for borrowers making a 20% down payment. This decline in points coincided with stable mortgage rates, resulting in a negligible change in overall demand for home loans. Total mortgage application volume dropped by just 0.4% compared to the previous week, as reported by the MBA’s seasonally adjusted index.
In contrast, refinancing activity experienced a slight uptick, with applications to refinance home loans increasing by 2% from the week prior. However, refinancing demand remains significantly lower than last year, with applications down 18% compared to the same week in 2025, when mortgage rates were somewhat lower.
It dropped to $282,200 last week, the lowest level since June 2025, Kan said. Applications for mortgages to buy homes fell 2% from the previous week. Purchase applications were also 3% lower than the same week a year earlier, showing that high borrowing costs are still weighing on demand from homebuyers.
Conventional and VA loan refinances increased slightly, while applications to refinance FHA loans declined, MBA Vice President and Deputy Chief Economist Joel Kan said. Kan said borrowers with larger loan amounts are less likely to refinance while mortgage rates remain at these higher levels, according to CNBC. Kan said affordability concerns have returned as a reason for people to delay buying homes. Economic uncertainty is also making some potential buyers more cautious, Kan said.
The average size of refinance loans also continued to fall. Home purchase applications moved in the opposite direction. Even though mortgage rates did not change last week, they are still sitting toward the higher end of their recent range. Higher monthly mortgage payments are becoming a bigger problem for buyers. Together with higher mortgage rates, this is making it harder for buyers to decide whether to purchase a home now.
