Mortgage applications edge up as rates climb, adjustable-rate loans gain share

Mortgage rates edged higher last week, reaching 6.79% for 30-year fixed-rate loans, the highest level since June 2025, according to the Mortgage Bankers Association. The overall volume of mortgage applications rose 0.8% week over week, while purchase-loan applications increased 2% but remained slightly below the same period a year earlier.

"Mortgage rates reached their highest levels in four weeks as investors' concerns about inflation and growing deficits push yields higher across the globe," said Mike Fratantoni, senior vice president and chief economist at the MBA.

The share of adjustable-rate mortgages (ARMs) climbed back to 8% of new applications, the strongest level in five weeks, Fratantoni added, noting that many local markets still have ample inventory to support transaction volume. The average rate for 5/1 ARMs fell to 5.94%.

Refinance applications slipped 1% for the week and were 19% lower than a year ago, reflecting limited borrower incentive to refinance amid elevated rates unless equity is needed.

Points on 30-year fixed loans with a 20% down payment fell slightly to 0.65 from 0.66.