Mortgage rates rise for sixth straight week, hitting demand hardest since 2023

The average contract interest rate on 30-year fixed-rate mortgages with conforming balances rose to 7.30% last week from 7.12%, the sixth consecutive weekly increase and the highest level since November 2023, according to the Mortgage Bankers Association. Rates climbed further to start this week, hitting 7.58% on Tuesday according to Mortgage News Daily.

Weekly mortgage application volume fell 6% overall. Refinance applications dropped 9% for the week and were 56% lower than a year earlier, while applications to purchase a home fell 4% and were 14% below last year's pace. Adjustable-rate loans, which carry rates about 0.8 percentage points lower than fixed loans, made up 10.3% of applications, the highest share since October 2025, as buyers looked for ways to cut costs.

Home prices are still climbing even as rates rise: the S&P Cotality Case-Shiller index showed a 1.9% annual price gain in July, up from 1.6% in June. Mortgage News Daily chief operating officer Matthew Graham said rates rose Tuesday even as oil prices dropped sharply, because "rates have a lot more on their mind than oil these days."