Mortgage rates hold at 6.77% as homebuyers face high costs and mortgage demand falls
US mortgage rates stayed at 6.77%, while refinance and home purchase applications fell, as high borrowing costs and weak affordability hit buyers.
Mortgage rates remained steady at 6.77% for a 30-year fixed loan with a loan amount of $832,750 or less, according to the Mortgage Bankers Association (MBA). Despite the rates staying unchanged, there was little motivation for homebuyers or current homeowners to approach lenders or make a move. The steady rates also meant that overall demand for home loans barely changed last week, with total mortgage application volume falling just 0.4% from the previous week.
Refinancing activity saw a slight increase, with applications to refinance a home loan rising 2% from the previous week, but still remaining weak compared with the same week in 2025. Applications to refinance FHA loans, however, declined. The average size of refinance loans also continued to fall, dropping to $282,200 last week, the lowest level since June 2025.
Home purchase applications moved in the opposite direction, falling 2% from the previous week and 3% lower than the same week a year earlier. Higher monthly mortgage payments are becoming a bigger issue for buyers, with affordability concerns returning as a reason for people to delay buying homes.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
