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Mortgage Rates Hit Five-Week High as Homebuyer Demand Resurges

Thirty-year fixed-rate mortgages with conforming loan balances increased to 6.46%, reaching their highest level in five weeks. Purchase mortgage applications rose 4% week-over-week and 7% compared to the same period last year, signaling renewed buyer interest despite economic headwinds. Total mortgage application volume increased 1.7% from the previous week, driven by sustained purchase demand. Refinance applications declined 1% for the week but remained 28% higher year-over-year, comprising just over 40% of total applications—the lowest share since July 2025. For loans with 20% down payments, the average contract rate reached 6.66%, including origination fees. Industry economists attributed the rebound to homebuyers adapting to elevated rate environments. Mortgage rates moved sharply higher amid less optimistic news regarding a resolution to the Iran war.