US mortgage applications decline as rates climb to 6.8%

Weekly data from the Mortgage Bankers Association show mortgage applications fell 2.9% for the week ending July 31, with the 30‑year fixed‑rate mortgage rising to 6.81%, its highest level in more than a year. Refinance activity dropped 2% and purchase applications slipped 4%, leaving total demand well below last‑year volumes. The refinance share of total applications rose to 39.9%, while FHA loan applications increased to 17.3%.

Analysts note the rate surge is tightening affordability, freezing inventory and pressuring homebuilders, title insurers and related industries. Real‑estate investment trusts and regional lenders are adjusting portfolios as higher borrowing costs curb origination volumes and strain corporate balance sheets.