Mortgage rates reached their highest level since May, resulting in declining mortgage demand. Total mortgage application volume dropped by 4.4% compared to the previous week, reaching its lowest monthly level. The average interest rate for 30-year fixed-rate mortgages increased to 6.85%, with points rising to 0.65. A separate survey indicated that the rate surpassed 7% on Thursday and continued to rise. Consequently, demand for home purchases decreased by 5% for the week and was 22% lower compared to last year. Refinance applications also fell by 4% and were 30% lower than the previous year. The average loan size for purchase applications declined to $423,500, the lowest since January 2023, likely influenced by reduced homebuying in high-priced markets and increased activity in lower-price tiers.
