Homes in Crockett, California, USA, on Thursday, January 22, 2026.
David Paul Morris | Bloomberg | Getty Images
Mortgage rates for conventional loans remained unchanged last week, nor did overall demand, but borrowers are actively seeking other loan products that offer greater savings.
According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume increased 0.3% last week compared to the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less remained unchanged at 6.21%, while points for loans with a 20% down payment remained unchanged at 0.56, including the origination fee.
The number of applications to refinance a home loan rose 1% this week, 101% higher than the same week a year ago. Mortgage rates were 74 basis points higher a year ago. Most lenders say that if a borrower can save 75 basis points, the cost of refinancing is worth it.
Get Property Play straight to your inbox
CNBC’s Property Play with Diana Olick covers new and evolving opportunities for real estate investors, delivered weekly to your inbox.
Sign up here to get access today.
Mortgage applications to purchase a home fell 2% for the week and were only 4% higher year-on-year. Homebuyers still face an expensive market, and supply is starting to fall again after rising for much of the last year.
“FHA purchase and refinance applications increased, helped in part by the decline in the FHA interest rate, which remains 20 basis points below the equivalent 30-year fixed rate,” said Joel Kan, MBA vice president and deputy chief economist. “Borrowers are increasingly using FHA loans as affordability issues persist despite recent improvements.”
Additionally, the share of adjustable-rate mortgages in total applications rose to 8%, a seven-week high. ARM rates were almost a full percentage point lower than fixed rates last week.
Mortgage rates fell slightly on Tuesday, according to a separate survey from Mortgage News Daily. That followed a weaker-than-expected retail sales report. All eyes are now on the monthly employment report, due to be released on Wednesday.
“Several recent rate increases have been slightly steeper than they otherwise might have been, as the market may have braced for a declining jobs number,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If it turns out weaker than expected, there is certainly room for the rate rally to continue, but if the report shows resilience, rates would likely rise again.”