Mortgage Rates Hit 11-Month High As Homebuying Demand Slips

• July 15th

by UrbanTurf Staff

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Mortgage rates are on the rise again, and homebuyers appear to be taking notice.

The average rate on a 30-year fixed mortgage rose to 6.65% last week, up from 6.58% the week prior and the highest level since August 2025, according to the Mortgage Bankers Association's (MBA) weekly applications survey released today. Rates for jumbo loans jumped even more sharply, climbing 12 basis points to 6.62%, nearly erasing the spread between the two loan types.

The higher rates put a dent in homebuying activity. Purchase applications fell 7% compared to a week earlier, and dipped 2% below the same week last year — the first time in roughly three months that purchase demand has fallen behind its year-ago pace.

"Purchase applications were down over the week and dipped below last year's pace in the week following the July 4th holiday," said Joel Kan, MBA's Vice President and Deputy Chief Economist. Overall application volume declined 2.7% for the week, the second consecutive weekly drop.

Refinance activity was the lone bright spot, rising 4% despite the higher rates and climbing to 43.2% of all applications, up from 40.6% a week earlier. Kan noted that government-backed borrowers led the way, with FHA refinance applications up 9% and VA refinances up 10% for the week. 

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_hit_11-month_high_as_homebuying_demand_slips/24817.