US Mortgage Demand Stays Weak as Rates Remain High
2026-08-19 11:09
By
Agna Gabriel
1 min. read
US mortgage rates were little changed last week, with the average contract rate for a 30-year fixed-rate mortgage with conforming balances holding at 6.77%.
The stability in borrowing costs provided little incentive for either prospective buyers or existing homeowners to act, with total mortgage application volume slipping just 0.4% from the previous week.
Although mortgage rates were unchanged during the week, they remained near the upper end of their recent range and moved slightly higher at the start of this week, suggesting housing activity may remain constrained in the near term.
Refinance applications increased 2%, although demand remained subdued as elevated rates continued to discourage borrowers, particularly those with larger loan balances.
Meanwhile, applications to purchase homes declined 2% as affordability pressures weighed on demand.
Higher monthly payments and broader economic uncertainty are prompting some buyers to delay purchases.