How Are Higher Mortgage Rates Affecting Homebuyers

Mortgage demand in the United States declined again last week as borrowing costs climbed to their highest level in more than a year, according to data from the Mortgage Bankers Association.

The report said total mortgage applications fell 2.9% from the previous week and were 5% lower than the same period a year earlier, marking the first annual decline since April. The average interest rate on a 30-year fixed-rate mortgage for conforming loans rose to 6.81% from 6.76%.

Refinance applications dropped 2% from the previous week and were down 9% year over year, while purchase applications declined 4% weekly and 3% annually.

The report noted that mortgage rates began easing early this week after oil prices fell amid softer rhetoric surrounding the Iran conflict, providing modest relief for prospective homebuyers and borrowers.

Related Tweet:

Mortgage rates hit their highest level in over a year, causing demand to drop below year-ago levels https://t.co/rlUGurZ7HO

— CNBC (@CNBC) August 5, 2026

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What Do The Latest U.S. Hiring Data Reveal

Although job openings slipped slightly to 7.36 million in June, they remained above levels recorded a year earlier, indicating that labor demand continues to hold up.

tippinsightsTIPP Staff