An aerial photo shows a residential neighborhood on June 4, 2026 in Pembroke Pines, Florida.
Joe Raedle | Getty Images
A mixed week in mortgage rates resulted in lower demand from both current homeowners and prospective homebuyers. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume fell 3.8% 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 6.60%, with the interest rate for loans with a 20% down payment remaining unchanged from 0.63, including the origination fee.
“Last week’s CPI data showed that inflation continued to rise, putting upward pressure on interest rates at the start of the week, but growing optimism about the opening of the Strait of Hormuz caused interest rates to fall again by the end of the week,” said Mike Fratantoni, MBA SVP and chief economist, in a press release.
The number of home loan refinancing applications fell 5% for the week and was 17% higher than the same week a year ago. Last year, mortgage rates were nearly a quarter of a percentage point higher.
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Mortgage applications to purchase a home fell 3% this week and were 3% higher than the same week a year ago. Home buyers continue to face more than just high mortgage rates. They are faced with still low supply, high prices and continued uncertainty about the development of the economy and inflation.
Mortgage rates continued to fall this week, according to a separate survey from Mortgage News Daily. They are now at their lowest level since May 14th. The decline reflects a fall in oil prices as investors react to a possible end to the war with Iran.
“The only caution is that some analysts believe oil prices have already outperformed in this regard,” wrote Matthew Graham, chief operating officer at Mortgage News Daily. “If these analysts are correct, this could limit any additional momentum toward lower interest rates until peace is on firmer footing.”
The first meeting of the Federal Reserve with its new chairman Kevin Warsh will take place on Wednesday. The Fed is not expected to change interest rates, but investors will be watching for clues about what could be coming.
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