Oil prices push mortgage rates to one-year high, applications slide
“This upward trajectory in rates continues to significantly impact refinance borrowers, with a 10% decline in refinance applications, including a steeper drop in government refinances,” said Joel Kan, CMB, vice president and deputy chief economist at the MBA.
“Despite housing inventory increasing in certain markets, higher rates have added to ongoing affordability challenges for many homebuyers, which drove the decrease in purchase activity over the week.”
Refinances bear the sharpest blow
The Refinance Index dropped 10% from the prior week and landed 2% below the same period one year ago.
The refi share of total applications fell to 39.5% from 41.2%, a sign that the refi window briefly cracked open earlier in 2026 is closing again.
Government refinances declined more steeply than conventional loans.
