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Mortgage applications fall 6.4% as rates climb
The 30-year fixed mortgage rate rose to 6.76%, while refinance applications dropped 10% week over week and fell further versus a year ago.
Mortgage application activity declined last week as higher borrowing costs pressured both home purchase and refinance demand, according to data from the Mortgage Bankers Association, cited by Mortgage News Daily.
For the week ending July 24, total application volume fell 6.4% on a seasonally adjusted basis. Purchase applications were down 4% from the prior week, though they remained 3% higher than the same week a year earlier.
Refinance demand weakened more sharply, with the Refinance Index slipping 10% versus the prior week and landing 2% below year-ago levels. Mortgage rates moved higher after a late spike in oil prices, and the 30-year fixed rate increased to 6.76%, its highest level since August 2025, said Joel Kan, MBA’s vice president and deputy chief economist.
The refinance share of overall mortgage activity decreased to 39.5% from 41.2%, while the adjustable-rate mortgage share rose to 8.1% from 7.7%. Mortgage News Daily also reported that government-backed lending accounted for a slightly smaller share, with FHA at 16.9% (down from 17.0%), VA at 12.6% (down from 13.2%), and USDA at 0.4% (down from 0.5%).