An “Open House” sign in front of my home for sale in the Woodland Hills area of Los Angeles, California, USA on Sunday, July 13th, 2025.
Eric Sayer | Bloomberg | Getty Images
Mortgage rates have barely moved in weeks, but interest rates aren’t the most heavy on consumers. What makes people worry more is the real uncertainty about the economy. It prevents some from making big financial decisions.
As a result, the total mortgage application volume fell 3.8% compared to last week, according to the Mortgage Bankers Association’s Seasonal Adjustment Index.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances fell from 6.84% to 6.83%, below $806,500, with points falling to 0.60 to 0.60 including the origin fee for a 20% down payment loan.
“We’re committed to providing a great opportunity to help you,” said Joel Kang, vice president and vice-chief economist at MBA. “There is still a lot of uncertainty surrounding the economy and job market that emphasizes decisions for future home buyers.”
Mortgage applications to buy homes fell 6% a week, 17% higher than the same week a year ago. However, the volume is very low, so the annual comparison is distorted.
“Traditional FHA and VA purchase loan applications have declined despite growing household prices and increasing levels of stock for sale in many regions,” Kan said.
Refinance application mortgages fell 1% a week and 30% higher in the same week a year ago. Overall refinance volume has also been historically low. This is the third consecutive week of decline in refinancing. Last year, the mortgage rate was essentially the same as just one basis point lower.
Mortgage rates have fallen very slightly to begin this week, but following Wednesday’s Federal Reserve announcement on interest rates and Chairman Jerome Powell’s commentary, there could be significant changes in both directions. The next big driver is the government’s monthly employment report release on Friday.
