US mortgage rates increased for the first time in four weeks, stopping an early-year trend of rising home purchases and refinancing.
The rise comes amid homebuyers’ sensitivity to changes in home-financing costs tied to fluctuations in the US Treasury market and geopolitical worries.
According to data from the Mortgage Bankers Association released today, the contract rate on a 30-year mortgage increased by 8 basis points to 6.24% for the week ending January 23.
MBA data indicated that mortgage applications for home purchases decreased by 0.4% last week from a three-year peak. Refinancing applications fell sharply by 15.7%, marking the first decline of the year.
In the prior week, home-financing costs fell to their lowest level since September 2024. Joel Kan, MBA’s Vice President and Deputy Chief Economist, said, “These lower rates prompted greater refinance activity from conventional and VA refinance borrowers, with increases of 29 percent and 26 percent, respectively. Refinance applications accounted for more than 60 percent of applications, and the average loan size also moved higher.”
By CEO NA Editorial Staff
