An article summarized by Quartz:
Mortgage applications fell 2.7% during the week ending July 10 as the average interest rate on a 30-year fixed mortgage rose to 6.65%, its highest level since August 2025, according to the Mortgage Bankers Association. The increase in borrowing costs weighed on homebuying activity, with purchase applications dropping 7% from the previous week and falling 2% compared with the same period a year earlier.
Despite the slowdown in home purchases, refinancing activity increased. Refinance applications rose 4% from the previous week and were up 7% year over year, accounting for 43.2% of all mortgage applications. FHA and VA refinance applications saw particularly strong gains, rising 9% and 10%, respectively.
Higher mortgage rates continue to challenge prospective homebuyers, who are also facing elevated home prices and a limited supply of affordable homes. While rates briefly climbed even higher earlier this week, they eased somewhat after a lower-than-expected inflation report, though economists say factors such as rising fuel prices continue to put upward pressure on borrowing costs.
