The development completed in Ashburn, Virginia on August 14th, 2024.
Andrew Caballero-Reynolds | AFP | Getty Images
Mortgage rates rose to their highest level in four weeks last week, but demand for mortgages has not really moved. The amount of total mortgage applications increased by 0.8% from last week, according to the Mortgage Bankers Association’s Seasonally Adjusted Index.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances is below $806,500, up from 6.82% to 6.84%, with points remaining unchanged at 0.62 including the origin fee for a 20% down payment loan.
Applications for refinancing for mortgages, which are most sensitive to weekly interest rate movements, fell 3% in a week, 22% higher than the same week a year ago. The annual jump may look big, but that’s because the volume is very small.
Mortgage applications to buy mortgages rose 3% in a week, 22% higher than the same week a year ago.
“After reaching $460,000 in March 2025, the purchase loan amount has fallen to $426,700 since January 2025,” said MBA economist Joel Kang. “The refinance application fell almost 3% in a week, as the 30-year fixed interest rate is still too high to profit many borrowers.”
Another study with Mortgage News Daily shows that mortgage fees have been slightly lower to begin this week. On Tuesday morning, the market responded positively to the details of Treasury Secretary Scott Bescent’s thoughts on whether Federal Reserve Chairman Jerome Powell would take office early. Last week, Bond rose in concerns he might have.
“It’s not that many words, but Bescent told Trump not to fire Powell. The report this morning (Tuesday) spread to that sentiment,” wrote Matthew Graham, chief operating officer of Mortgage News. “Best News has helped the bond market begin its day in stronger territory.”
