Homes in Palm Beach Gardens, Florida, US, on Sunday, Jan. 11, 2026.
Zak Bennett | Bloomberg | Getty Images
After dropping sharply, mortgage interest rates rose last week for the first time in a month. That pushed total mortgage demand down 8.5% 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, $832,750 or less, increased to 6.24% from 6.16%, with points rising to 0.55 from 0.54, including the origination fee, for loans with a 20% down payment. That was the highest rate in three weeks.
As a result, applications to refinance a home loan dropped 16% for the week, but they were still 156% higher than the same week one year ago. That is because rates a year ago were 78 basis points higher.
“FHA refinance activity bucked the overall trend and increased, as FHA rates remained almost 20 basis points lower than conforming rates,” said Joel Kan, MBA’s vice president and deputy chief economist, in a release. “With rates holding in the 6 percent range, the refinance market is likely to remain sensitive to week-to-week rate movements.”
Applications for a mortgage to purchase a home were essentially flat, down 0.4% from one week earlier and 18% higher year over year. Homebuyers are still facing a very pricey market. There is more supply than last year, but most of it is on the high end.
“The average loan size stayed at its highest level since September 2025,” Kan added.
Mortgage rates moved slightly lower to start this week, according to a separate survey from Mortgage News Daily. The next chance for a sizeable move in rates in either direction comes Wednesday with the latest meeting of the Federal Open Market Committee. Most expect it to keep its benchmark interest rate unchanged, but markets will be ready to react to commentary from Federal Reserve Chair Jerome Powell.
