FX.co ★ US Mortgage Demand Stays Weak as Rates Remain High

US mortgage rates held steady last week, with the average contract rate for a 30-year fixed-rate mortgage on conforming loans unchanged at 6.77%. This stability in borrowing costs offered little motivation for either potential buyers or current homeowners to move forward, and total mortgage application volume edged down 0.4% from the previous week. While rates were flat over the period, they stayed near the upper end of their recent range and ticked slightly higher at the start of this week, indicating that housing activity is likely to remain subdued in the near term. Refinance applications rose 2%, but overall demand stayed muted as elevated rates continued to deter borrowers, especially those with larger loan balances. At the same time, purchase applications fell 2%, reflecting the impact of affordability constraints. Higher monthly payments, combined with broader economic uncertainty, are leading some prospective buyers to postpone their home purchases.