U.S. mortgage applications slide as 30-year rate rises to 6.76%

U.S. mortgage demand weakened sharply in the week ending July 24 as higher borrowing costs pushed both refinancing and home-purchase activity lower. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, fell 6.4% to 247.2, reversing the prior week's 1.9% gain. The average contract rate on a 30-year fixed mortgage for conforming loan balances of $832,800 or less rose to 6.76% from 6.69%, the highest since last August. The average 15-year fixed rate increased to 6.15% from 6.04%. Refinance applications dropped 9.9% to 723.1, while the refinance share of total applications fell to 39.5% from 41.2%. Purchase applications also declined, with the seasonally adjusted Purchase Index down 3.6% to 159.8. Joel Kan, MBA Vice President and Deputy Chief Economist, said the sustained rise in rates weighed heavily on refinancing demand, with government-backed refinance programs falling even more sharply. The data underscore how moves in Treasury yields and expectations for Federal Reserve policy are feeding through to mortgage costs, worsening affordability for buyers and reducing incentives for existing homeowners to refinance or move.