Mortgage applications rose by 1.9% in the week ended July 17 despite an increase in 30-year fixed mortgage rates, according to Mortgage Bankers Association data released Wednesday.
This follows a 2.7% decrease in overall activity in the week ended July 10.
Applications for refinancing loans fell by 2%, while new purchase applications rose by a seasonally adjusted 6%.
The average contract interest rate for 30-year fixed mortgages with loan balances of $832,750 or less rose to 6.69% from 6.65% in the previous week, hitting its highest point since August 2025.
"Growing home inventory in many markets is supporting more purchase activity," said Mike Fratantoni, MBA's senior vice president and chief economist. "Incoming data showed that inflation dropped in June, but with oil prices spiking again, that improvement seems unlikely to continue in July data, and mortgage rates are likely to remain higher as a result."