The Mortgage Bankers Association's (MBA) weekly application survey continues to track closely with the more granular daily rate data from MND. Both showed mortgage rates climbing to new multi-month highs last week, and that upward momentum once again took a toll on refinance demand—even as purchase applications managed to grind higher.

“Mortgage rates reached [their] highest level since January, following higher Treasury yields,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Additional market volatility has added to the increase, keeping the mortgage-Treasury spread wider than it was earlier this year. The 30-year fixed rate increased to 6.98 percent, its third consecutive weekly increase.” Kan noted that while refis dropped, purchases continue to outperform year-ago levels thanks in part to rising inventory.

That aligns with the broader data: refinance applications fell 7 percent from the previous week, while purchase applications rose 3 percent. Compared to the same week one year ago, purchases are up 18 percent and refis are still running 37 percent ahead—though that year-over-year gap is narrowing.

Mortgage Rate Summary From MBA's data:

• 30yr Fixed: 6.98% (+0.06) | Points: 0.67 (−0.02)

• Jumbo 30yr: 6.93% (−0.01) | Points: 0.69 (−0.03)

• FHA: 6.66% (+0.06) | Points: 0.95 (−0.01)

• 15yr Fixed: 6.23% (+0.02) | Points: 0.67 (−0.05)

• 5/1 ARM: 6.22% (+0.06) | Points: 0.46 (+0.10)

In more timely mortgage rate developments, MND’s daily rate tracking showed a welcome drop to start the new week, indicating that mortgage rates may be stabilizing after a sharp three-week climb. That shift could offer a bit of relief for refinance demand, although volatility remains elevated and purchase activity tends to be less reactive to short-term changes.

Breakdown of changes in composition of applications:

• Refinance Share: 34.6% (↓ from 36.6%)

• ARM Share: 7.5% (↑ from 7.1%)

• FHA Share: 17.9% (no change)

• VA Share: 12.3% (↓ from 12.6%)

• USDA Share: 0.5% (no change)