Weekly mortgage demand fell slightly as borrowing costs held steady, pressuring homebuyers and refinancing activity amid affordability concerns.
US mortgage application volume declined 0.4% last week as the average 30-year fixed rate remained unchanged at 6.77%. The Mortgage Bankers Association reported the drop, citing steady borrowing costs as a deterrent for buyers and homeowners.
Purchase applications fell 2% week-over-week and were 3% lower than the same period last year. Refinance activity rose 2% but remained 18% below year-ago levels, when rates were marginally lower. The average refinance loan size shrank to $282,200, the lowest since June 2025.
Affordability challenges and economic uncertainty continued to weigh on demand, with higher rates increasing monthly mortgage payments for potential buyers.