WASHINGTON—Mortgage application activity declined last week as interest rates climbed to their highest level in seven weeks, dampening demand from both homebuyers and homeowners seeking to refinance, according to the Mortgage Bankers Association.
The MBA said total mortgage application volume fell 2.3% on a seasonally adjusted basis from the previous week.
According to the MBA, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased to 6.56% from 6.46% the previous week. Points for those loans, including the origination fee, decreased to 0.60 from 0.63 for borrowers making a 20% down payment.
“Ongoing concerns around inflation from higher fuel costs combined with rising concerns over global public debt pushed Treasury yields higher in the U.S. and abroad last week,” the MBA’s Joel Kan said in a statement released by the MBA.
Up in ARMs
The MBA also reported that adjustable-rate mortgages accounted for nearly 10% of total applications last week, the highest share since October 2025. Adjustable-rate mortgages, or ARMs, typically offer lower initial interest rates than fixed-rate loans but are considered riskier because rates can reset higher after an introductory period.
Additional Findings
According to the MBA:
- The average interest rate for a five-year ARM was 5.76% last week.
- Applications for mortgages to purchase homes declined 4% from the previous week, the MBA said, although purchase activity remained 8% higher than the same week a year earlier, when mortgage rates were closer to 7%.
- Refinancing activity was relatively flat, falling 0.1% from the prior week, according to the MBA. Refinance applications, however, remained 35% higher than the same week one year ago.
“Overall applications were down to the lowest level in five weeks as purchase borrowers pulled back across conventional and government loan types,” Kan said in the MBA report.
