Mortgage rates jump for the sixth straight week, hitting both refinance and homebuyer demand hard

Mortgage rates continued to climb for the sixth straight week, reaching the highest level since November 2023. That caused weekly demand to drop 6%, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased last week to 7.30% from 7.12%, with points increasing to 0.75 from 0.73, including the origination fee, for loans with a 20% down payment. Refinance demand has been hit hardest, given that so few borrowers can now benefit at today's higher interest rates. Applications to refinance a home loan dropped 9% for the week and were 56% lower than the same week one year ago.