The Mortgage Bankers Association reported a 2.7% drop in total mortgage application volume for the week ending July 10, as the 30-year fixed rate climbed to its highest point in nearly a year.
Purchase applications slid 7% for the week ending July 10, while refinance demand edged higher despite elevated borrowing costs
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The Mortgage Bankers Association reported a 2.7% drop in total mortgage application volume for the week ending July 10, as the 30-year fixed rate climbed to its highest point in nearly a year.
The MBA reported that the average contract interest rate on conforming 30-year fixed mortgages climbed to 6.65% — its highest reading since August 2025 — up from 6.58% the week before, with points ticking up to 0.67 from 0.64 on loans carrying a 20% down payment, after accounting for the origination fee.
Purchase mortgage applications slipped 7% week over week and trailed the comparable period from a year earlier by 2%, the MBA said. "Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year's pace in the week following the July 4th holiday," Joel Kan, MBA's vice president and deputy chief economist, said in a statement.
Prospective buyers continue to face a difficult market, squeezed by elevated home prices and a thin supply of affordable listings, according to CNBC.
Refinance applications moved in the opposite direction, rising 4% for the week and running 7% above the same period a year ago. Refinances accounted for 43.2% of all mortgage applications, up from a 40.6% share the week before, the MBA said. FHA refinance applications rose 9% and VA refinance applications gained 10%.
Rates for other loan types also increased. The 30-year jumbo rate — for loans above $832,750 — rose to 6.62% from 6.50%, and the 15-year fixed rate moved up to 6.05% from 5.99%, the MBA said. The five-year ARM rate fell to 5.75% from 5.84%.
Rates moved higher still at the start of this week before pulling back after an inflation reading came in lower than expected, according to CNBC. Matthew Graham, chief operating officer at Mortgage News Daily, attributed the recent spike partly to an uptick in fuel prices in July. "In other words, we were already in a high range and the uptick in fuel prices simply gave rates a push," Graham wrote.
The current rate environment echoes conditions from earlier this year. The 30-year rate previously reached its highest level since August 2025 during the week ending May 28, when overall application volume fell 8.5% and refinance applications dropped 18%. Rates subsequently eased before climbing again in recent weeks. For the week ending July 3, the MBA recorded a 2.2% decline in total application volume, with the 30-year fixed rate at 6.58% — the same level that prevailed heading into last week's increase.
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