Business & Finance
U.S. mortgage rates rise to 6.78%, dampening overall application volume
Higher borrowing costs led to declines in both refinance and home purchase applications last week, according to the Mortgage Bankers Association.
The short version
- The average rate on 30-year fixed-rate mortgages rose slightly to 6.78% last week, marking a three-week high.
- Overall mortgage application volume fell 1% week-over-week, with refinance applications dropping 2% and purchase applications down 0.3%.
- Mortgage rates eased early the following week as bond yields dropped alongside lower oil prices.
Key facts
- The Mortgage Bankers Association's seasonally adjusted index showed overall mortgage application volume fell 1% last week.[CNBC]
- The average contract interest rate for 30-year fixed-rate mortgages with conforming balances ($832,750 or less) reached 6.78%, up from 6.77% the prior week.[CNBC]
- Refinance applications fell 2% for the week and were 17% lower than the same period a year ago.[CNBC]
- Home purchase applications fell 0.3% over the week, driven largely by a 7% decrease in FHA loan applications, and remained 5% lower than the prior year.[CNBC]
- A separate survey by Mortgage News Daily reported that mortgage rates declined early the following week as bond yields fell alongside sharp drops in oil prices.[CNBC]
What remains uncertain
- The sustainability of early-week rate relief remains uncertain, as bond yield movements depend on broader economic data and geopolitical news regarding peace process developments.[CNBC]