Purchase demand rises as mortgage rates hit 11-month high
The Refinance Index fell 2% for the week, though it remains 7% above year-ago levels.
Rates reach another high
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) rose to 6.69% from 6.65%, the highest reading since August 2025.
“Mortgage rates reached another high point last week, with the 30-year conforming rate now at 6.69%, its highest level since last August,” said Mike Fratantoni, MBA’s SVP and chief economist.
“However, purchase volume increased modestly for the week. Growing home inventory in many markets is supporting more purchase activity.”
Fratantoni flagged the inflation picture as the critical wildcard. June consumer price data showed improvement, but spiking oil prices raise doubts about whether that relief will carry through to July, keeping mortgage rates elevated as a result.
