Sunday, January 11, 2026 at a residence in Palm Beach Gardens, Florida, USA.
Zack Bennett Bloomberg | Getty Images
Mortgage interest rates rose for the first time in a month last week after falling sharply. According to the Mortgage Bankers Association’s seasonally adjusted index, total demand for mortgage loans fell 8.5% from the previous week as a result of this.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less, including origination fees for loans with a 20% down payment, increased from 0.54 to 0.55 points and from 6.16% to 6.24%. This was the highest level in three weeks.
As a result, mortgage refinance applications fell 16% for the week, but were still up 156% compared to the same week last year. That’s because interest rates were 78 basis points higher a year ago.
“FHA refinance activity increased, bucking the overall trend, as FHA interest rates remained nearly 20 basis points below conforming rates,” Joel Kang, MBA’s vice president and deputy chief economist, said in a release. “With interest rates hovering in the 6% range, the refinance market is likely to remain sensitive to weekly interest rate movements.”
The number of applications for mortgage loans for home purchases was almost flat, down 0.4% from the previous week and up 18% from the same month last year. Homebuyers still face a very expensive market. There is more supply than last year, but most of it is luxury goods.
Prime Minister Suga added, “The average loan amount remained at the highest level since September 2025.”
Mortgage rates fell slightly earlier this week, according to a separate Mortgage News Daily survey. The next chance for interest rates to move significantly in either direction comes at Wednesday’s latest meeting of the Federal Open Market Committee. Most expect interest rates to remain unchanged, but the market will react quickly to Fed Chairman Jerome Powell’s comments.
