Mortgage rates continued to climb even higher last week, causing current and potential homebuyers to retreat from the market.
According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume fell 4.4% compared to the week before.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.45% from 6.37%, with points rising to 0.66 from 0.61, including the origination fee, for loans with a 20% down payment.
“The ongoing conflict in the Middle East continues to push rates higher. Mortgage rates last week increased to their highest level in a month,” said Joel Kan, vice president and deputy chief economist at the MBA, in a release reported by CNBC.
Application for a mortgage to purchase a home rose 4% week-over-week and 5% year-over-year.
The spring market started very slowly when rates rose slowly in March.
Recently, it looked like it was picking up again as rates fell back and more supply came onto the market, but buyers are still struggling with affordability.
“The average loan size on a purchase application increased to $467,300, the highest in the survey’s history dating back to 1990,” Kan said.
“This increase could indicate that potential first-time buyers, and buyers looking for homes at lower price points, might be the most hesitant to move forward given the economic uncertainty and higher rates.”
Applications for refinance had the greatest dip of 5% for the week.
Despite this, the demand was still 29% higher than the same time a year ago.
The 30-year fixed rate was just 39 basis points higher at this time last year. The refinance share of mortgage activity decreased to 42% of total applications, the lowest since August 2025.
Mortgage rates moved even higher to start this week, according to a separate survey from Mortgage News Daily.
Another big change could come next Friday after the government releases its monthly employment report.
