Mortgage applications were flat last week as borrowing costs held steady, giving homebuyers and homeowners little reason to act, according to CNBC. According to the Mortgage Bankers Association's seasonally adjusted index, total mortgage application volume slipped 0.4% from the prior week. The 30-year fixed rate for conforming loan balances at or below $832,750 stayed at 6.77%; associated points edged down to 0.65 from 0.67 — origination fee included — on loans carrying a 20% down payment.
Applications to purchase a home dropped 2% for the week and were 3% below the same period a year ago. Refinance applications posted a 2% weekly gain yet still trailed year-ago volume by 18%, a period when borrowing costs were modestly cheaper. "Mortgage rates and applications changed little last week, with just a slight increase in refinances for conventional and VA loans, while FHA refinances were lower," Joel Kan, MBA's vice president and deputy chief economist, said in a statement.
"Borrowers with larger loan sizes remain less likely to refinance with rates at these higher levels. The average loan size on refinances continues to shrink, dipping to $282,200 last week, the lowest level since June 2025." Joel Kan also pointed to deteriorating affordability as a factor weighing on purchase activity. "In addition to the economic uncertainty, affordability difficulties have reemerged as a reason for homebuyers to delay purchase decisions given the impact of higher mortgage rates on monthly mortgage payments," he said.
A separate Mortgage News Daily survey showed rates ticking up slightly as the new week got underway. The current stretch of elevated rates marks a shift from conditions earlier this summer. As reported by the MBA for the week ending July 3, the 30-year fixed rate stood at 6.58% — nearly 20 basis points below last week's level — though total application volume had already begun softening, falling 2.2% that week.
Refinance volume at that point was still running 8% above year-ago levels, a contrast to the 18% year-over-year decline recorded last week.
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