Buyers retreat as mortgage rates climb to 11-month high
Purchase applications fell 7% from the previous week and slipped 2% below the same week one year ago. Buyers continue to face a market defined by high home prices and a persistent shortage of affordable listings.
As mortgage rates keep the US housing market subdued through 2026, those conditions have shown little sign of easing heading into late summer.
The June consumer price index delivered the largest monthly decline in more than six years Tuesday, pulling Treasury yields lower and briefly easing pressure on the Federal Reserve.https://t.co/S0iPtGRbZd
— Mortgage Professional America Magazine (@MPAMagazineUS) July 14, 2026
Refinances defy the pullback
The refinance segment moved in the opposite direction. Applications gained 4% for the week and were 7% above year-ago levels, pushing the refinance share of total applications to 43.2% from 40.6%.
“Mortgage applications declined as the 30-year fixed rate increased to 6.65%, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday,” said Joel Kan, vice president and deputy chief economist at the MBA.
“Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively.”
