Mortgage demand falls below year-ago pace after rate surge
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) rose to 6.81% from 6.76% the prior week.
The effective rate on the same product climbed to 6.99%, its highest level since July 2025, according to Oxford Economics data derived from the MBA survey.
Jumbo 30-year rates edged up to 6.72%, FHA-backed 30-year mortgages averaged 6.43%, and the 5/1 adjustable-rate mortgage (ARM) moved to 6.03% from 5.98%. The 15-year fixed slipped marginally to 6.13%.
Rate relief may be on the horizon
The ARM share of applications fell to 7.9% from 8.1%, while the refinance share ticked up to 39.9% from 39.5%.
The FHA share rose to 17.3%. Average purchase loan sizes declined to $442,100 from $445,400, and average refinance loan sizes settled at $291,100, per Oxford Economics, a signal of continued pressure on borrower purchasing power.
