This has resulted in an even further decline in the already very weak demand for mortgage loans. The total volume of mortgage loan applications decreased by 3.7% compared to the previous week, according to the seasonally adjusted index of the Mortgage Bankers Association.
The average contract rate for 30-year fixed-rate mortgage loans with conforming loan balances ($766,550 or less) increased to 6.99% from 6.97%. This is the highest rate since July 2024.
Refinance applications increased by 2% from the previous week, but were 6% lower than the same week a year ago. Interest rates are now 18 basis points higher than they were a year ago.
Applications for home purchase mortgages decreased by 7% for the week and were 15% lower than the same week a year ago. There is a much larger supply of homes for sale now compared to last January, but higher rates and higher home prices are clearly keeping buyers on the sidelines.
