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Mortgage rates hold at 6.77% as homebuyers face high costs and mortgage demand falls
US mortgage rates stayed at 6.77%, while refinance and home purchase applications fell, as high borrowing costs and weak affordability hit buyers.
Mortgage rates stayed unchanged last week, giving homebuyers and current homeowners little reason to contact lenders or make a move. The average rate for a 30-year fixed mortgage remained at 6.77% for loans with conforming balances of $832,750 or less, according to the Mortgage Bankers Association (MBA).
Mortgage points fell slightly to 0.65 from 0.67, including the origination fee, for borrowers making a 20% down payment, the MBA said. The steady mortgage rates also meant that overall demand for home loans barely changed last week. Total mortgage application volume fell just 0.4% from the previous week, according to the MBA’s seasonally adjusted index.
Refinance applications rise
Refinancing activity was one of the few areas to see an increase. Applications to refinance a home loan rose 2% from the previous week. However, refinancing demand was still weak compared with last year. Applications were 18% lower than the same week in 2025, when mortgage rates were slightly lower.
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Conventional and VA loan refinances increased slightly, while applications to refinance FHA loans declined, MBA Vice President and Deputy Chief Economist Joel Kan said. Kan said borrowers with larger loan amounts are less likely to refinance while mortgage rates remain at these higher levels, according to CNBC. The average size of refinance loans also continued to fall. It dropped to $282,200 last week, the lowest level since June 2025, Kan said.
Home buying slows
Home purchase applications moved in the opposite direction. Applications for mortgages to buy homes fell 2% from the previous week. Purchase applications were also 3% lower than the same week a year earlier, showing that high borrowing costs are still weighing on demand from homebuyers. Even though mortgage rates did not change last week, they are still sitting toward the higher end of their recent range.
Higher monthly mortgage payments are becoming a bigger problem for buyers. Kan said affordability concerns have returned as a reason for people to delay buying homes. Economic uncertainty is also making some potential buyers more cautious, Kan said. Together with higher mortgage rates, this is making it harder for buyers to decide whether to purchase a home now.
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Mortgage rates rise again
Mortgage rates started moving slightly higher again this week, according to a separate survey from Mortgage News Daily. This means homebuyers are still facing a difficult market, with borrowing costs remaining high and little improvement in mortgage rates to encourage them to make a purchase.
For current homeowners, the lack of a major drop in rates also means there is still limited benefit from refinancing, especially for people with larger mortgages. Overall, the latest data shows that mortgage rates around 6.77% are keeping both buyers and refinancers cautious, while affordability remains a major issue in the US housing market.
