Homebuyers Return Despite Higher Borrowing Costs

Mortgage rates in the United States are rising again, weighing on refinancing activity, even as homebuyers slowly return to the market, according to data reported by the Mortgage Bankers Association.

The report said total mortgage applications fell 1.6% last week. The average 30-year fixed mortgage rate edged up to 6.37%. As expected, refinance demand dropped 4%, reflecting sensitivity to rate increases, though it remains higher than a year ago.

Mortgage rates are rising again, but homebuyers are trickling back https://t.co/OQuy4pD8AN

— CNBC (@CNBC) April 29, 2026

In contrast, purchase applications rose 1% week-on-week and jumped 21% compared to last year. According to the association, improved housing supply and easing concerns over geopolitical tensions, including the Iran conflict, are encouraging buyers to re-enter the market.

Investors are now closely watching comments from Jerome Powell. While no rate change is expected, the report said his guidance could influence mortgage trends in the coming weeks.

Also Read:

Warsh Fed Nomination Unlikely To Bring Quick Rate Cuts

Kevin Warsh, the Federal Reserve chair nominee backed by Donald Trump, is unlikely to deliver rapid interest rate cuts despite White House expectations, according to analysis reported by CNN. The report said multiple economic factors are limiting the case for lower rates. Inflation remains elevated, with consumer prices rising 3.

tippinsightsTIPP Staff