Last week, mortgage rates remained unchanged at 6.77%, leading to a flat total mortgage application volume, which decreased by 0.4% according to the Mortgage Bankers Association. The average points for 30-year fixed-rate mortgages slightly decreased to 0.65, but the overall lack of movement in rates has left little incentive for borrowers.
Refinancing applications saw a modest increase of 2%, yet they are still 18% lower than the same week last year. Joel Kan, the MBA's VP and deputy chief economist, noted that borrowers with larger loan sizes are less inclined to refinance due to elevated rates, with the average refinance loan size dropping to $282,200, the lowest since June 2025.
Meanwhile, applications for purchasing homes fell by 2% week-over-week and were 3% lower than the same period last year. Kan emphasized that economic uncertainty and affordability issues are causing potential homebuyers to delay their purchasing decisions.
As mortgage rates have started to rise again this week, the outlook for the housing market remains cautious, with affordability continuing to be a significant barrier for many buyers