Mortgage demand and interest rates remain stuck at low levels
Real Estate
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Mortgage demand and interest rates remain stuck at low levels

Why This Matters

Mortgage demand barely moved last week. With no real change in mortgage interest rates, consumers have little incentive to refinance.

August 27, 2025
11:46 AM
2 min read
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An aerial view of a housing development on August 08, 2025 in Las Vegas, Nevada.

Justin Sullivan | Getty ImagesFor the second week in a row, mortgage demand has barely moved, as interest rates also remain stuck in the mud.Total mortgage application volume fell 0.5% last week compared with the previous week, 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, $806,500 or less, increased to 6.69% from 6.68%, with points remaining unchanged at 0.60, including the origination fee, for 80% loan-to-value ratio, or LTV, loans.Applications to refinance a loan fell 4% for the week and were 19% higher than the same week one year ago.

The refinance of mortgage activity decreased to 45.3% of total applications from 46.1% the previous week.Get perty Play directly to your inboxCNBC's perty Play with Diana Olick covers new and evolving opportunities for the real estate investor, dered weekly to your inbox.

here to get access today.Applications for a mortgage to purchase a rose 2% for the week and were 25% higher than the same week one year ago.

That small gain made this the strongest week for purchase demand in a month, although that's not saying much, given the very low level.

The average purchase loan size rose to $433,400, the highest in two months.

That reflects higher prices."spective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling -price growth in many parts of the country," said Joel Kan, an MBA economist, in a release.Mortgage rates haven't moved at all to start this week either, despite news that President Donald Trump fired Federal Reserve Governor Lisa Cook.

The implication is that Cook's successor, if there is one, would be supportive of a more aggressive cut in interest rates.

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  • The Federal Reserve's actions could influence market sentiment across sectors
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