In an aerial photo, two-story single-family homes line the streets on January 14, 2026 in Thousand Oaks, California.
Kevin Carter | Getty Images
Mortgage rates fell to their lowest level in a month last week, prompting more current borrowers to seek savings when refinancing. While lower interest rates didn’t provide much incentive for would-be buyers, the rush to refinance was enough to boost overall mortgage demand by 2.8% compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less fell from 6.21% to 6.17%, with points for loans with a 20% down payment remaining unchanged at 0.56, including the origination fee.
“Treasury yields ended the week lower as weaker retail sales and home sales data outweighed better-than-expected January labor market numbers,” Joel Kan, MBA vice president and deputy chief economist, said in a news release.
As a result, applications to refinance a home loan rose 7% this week and were 132% higher than the same week a year ago. Last year, interest rates were 76 basis points higher. While this annual increase may seem large, refinancing was at extremely low levels at this time last year.
“Refinance applications increased across all loan types, marking the strongest refinancing week since mid-January,” Kan added.
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Mortgage applications to purchase a home fell 3% this week and were just 8% higher than the same week a year ago. While lower mortgage rates are making homes a little more affordable, new listings aren’t coming to market fast enough, and concerns about the broader economy are keeping consumers waiting.
Mortgage rates haven’t changed at all heading into this holiday week, but economic data due to be released this week could have an impact on the current trend. In general, however, mortgage interest rates have been in a fairly narrow range between 6% and 6.25% since the beginning of the year.