Mortgage rates have continued to rise, with the average contract interest rate for 30-year fixed-rate mortgages increasing to 6.69%, the highest level since last August. This uptick has led to a 2% decline in refinance demand, while applications for home purchases rose by 6% week-over-week, indicating a slight recovery in buyer interest.
The Mortgage Bankers Association noted that growing home inventory is supporting this increase in purchase activity. However, analysts warn that rising oil prices could hinder the recent improvements in inflation, suggesting that mortgage rates may remain elevated.
Matthew Graham from Mortgage News Daily highlighted that fuel prices are a significant factor influencing these rate movements, as they have recently reached highs not seen since mid-May. Overall, while buyers are finding some advantages in the current market, the persistent rise in mortgage rates poses challenges for long-term affordability and housing demand