Mortgage application activity retreated last week, according to the Mortgage Bankers Association's seasonally adjusted index. Overall applications fell 1.6% as borrowing costs ticked up.
The average contract interest rate for conventional 30-year fixed mortgages - those with conforming loan balances of $832,750 or less - rose to 6.37% from 6.35%. For borrowers putting 20% down, points, which include the origination fee, remained at 0.61.
Refinance requests showed a larger weekly pullback, declining 4%. Despite that weekly drop, refinance volume was still 51% higher than the same week a year earlier, a period when the 30-year fixed rate was about a half percentage point higher than current levels.
On the purchase side, applications edged up 1% for the week and were 21% above the comparable week a year ago. The report noted that an increase in housing inventory has entered the market, and that buyers appear to be adjusting to news regarding the war with Iran.
Taken together, the data depict a market where higher rates are pressuring overall mortgage demand, particularly refinancing, while purchase activity has shown modest resilience. The combination of slightly higher mortgage rates, increased inventory, and sensitivity to geopolitical developments appears to be shaping borrower behavior in recent weeks.
Contextual notes: The figures cited reflect weekly movements reported by the Mortgage Bankers Association and relate specifically to 30-year fixed-rate loans within conforming balance limits. Points shown apply to loans with a 20% down payment.