Mortgage applications fell by 2.7% in the week ended July 10 as higher 30-year mortgage rates depressed new home applications, while refinancing activity improved, Mortgage Bankers Association data released Wednesday showed.
This follows a 2.2% decrease in overall activity in the week ended July 3, when an adjustment was made for the July 4th holiday.
Applications for refinancing loans rose by 4%, while new purchase applications fell by a seasonally adjusted 7%.
The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less rose to 6.65% from 6.58% in the previous week, the highest 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, MBA's vice president and deputy chief economist. "Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9% and 10%, respectively."