Mortgage demand drops to lowest level since May, as interest rates stall

An "Open House" sign in front of a for sale in the Woodland Hills neighborhood of Los Angeles, California, US, on Sunday, July 13, 2025

Eric Thayer | Bloomberg | Getty ImagesMortgage interest rates have barely moved in several weeks, but rates are not what is weighing on consumers most

It's really uncertainty the economy that worries people more

That is keeping some from making big financial decisions.As a result, total mortgage application volume dropped 3.8% 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, decreased to 6.83% from 6.84%, with points falling to 0.60 from 0.62, including the origination fee, for loans with a 20% down payment."Mortgage applications fell to their lowest level since May, with both purchase and refinance activity declining over the week," said Joel Kan, vice president and deputy chief economist at the MBA. "There is still plenty of uncertainty surrounding the economy and job market, which is weighing on spective buyers' decisions."Applications for a mortgage to purchase a dropped 6% for the week and were 17% higher than the same week one year ago

Volume, however, is so low that the annual comparison is skewing deceptively high."Applications for conventional, FHA, and VA purchase loans fell, despite slowing -price growth and increasing levels of for-sale inventory in many regions," said Kan.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 to refinance a loan fell 1% for the week and were 30% higher the same week one year ago

Overall refinance volume is also historically low

That is the third straight week of declines in refinancing

Last year, mortgage rates were just 1 basis point lower, so essentially the same.Mortgage rates fell very slightly to start this week, but could see a bigger change in either direction ing the Federal Reserve's announcement on interest rates Wednesday and Chairman Jerome Powell's ary

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