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 rose last week to their highest level since late last year, slowing the growing refinancing demand the market saw earlier this year. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume fell 10.9% 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 increased from 6.19% to 6.30%, with points for loans with a 20% down payment increasing from 0.58 to 0.63, including the origination fee.
“Mortgage rates continued to rise, driven by rising Treasury yields as conflict in the Middle East kept oil prices high, along with the risk of a broader inflation shock. Mortgage rates rose across the board,” said Joel Kan, an MBA economist, in a press release.
The number of applications to refinance a home loan fell 19% week-over-week, but was still 69% higher than the same week a year ago.
“Interest rates were around 20 basis points higher than two weeks ago, and this led to a reversal in refinance activity, particularly in conventional refinance applications, which fell 27 percent for the week. Federal refinances also fell, although by 5 percent, as FHA rates did not rise quite as quickly,” Kan added.
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Mortgage applications to purchase a home increased 1% this week and were 12% higher than the same week a year ago. The all-important spring housing market, which officially begins later this week, begins with slightly more inventory than last year, and interest rates are still 42 basis points below last year’s levels.
Affordability is improving, with prices now falling compared to last spring in some markets and remaining flat in others.
Mortgage rates fell slightly earlier this week, according to a separate survey from Mortgage News Daily. While most Federal Reserve watchers don’t expect the central bank to cut its interest rate at Wednesday’s Federal Open Market Committee meeting, there’s always the possibility that comments from the chairman could move bond markets.
“Fed days can still cause fluctuations in interest rates, for better or worse.” [Wednesday’s] “In this case, the Fed’s impact should be less than it would otherwise have been because of the market’s preoccupation with geopolitical influences,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
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