U.S. mortgage rate rises to 6.81%

The Mortgage Bankers Association said on August 5 that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 6.81% in the week ended July 31, up from 6.76% a week earlier. The increase pushed borrowing costs to the highest level in more than a year and coincided with another drop in mortgage demand, according to the group’s weekly survey. Total mortgage application volume fell 2.9% from the prior week on a seasonally adjusted basis. CNBC, citing the survey, reported that overall demand fell below year-ago levels. ### How much did mortgage rates rise, and which loans does that cover? The 6.81% reading applied to 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less, CNBC and Yahoo Finance reported, citing Mortgage Bankers Association data. Yahoo Finance, citing Bloomberg, said the rate rose 5 basis points from the prior week. Points, including the origination fee, increased to 0.68 from 0.62 for loans with a 20% down payment. (cnbc.com) The Mortgage Bankers Association said the survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The group has conducted the weekly survey since 1990, according to its methodology note. ### What happened to mortgage demand once rates moved higher? (cnbc.com) CNBC reported that total mortgage application volume dropped 2.9% week over week, based on the Mortgage Bankers Association’s seasonally adjusted index. Refinance applications fell 2% from the previous week and were 9% lower than the same week a year earlier, while applications to buy a home declined 4% on the week and were 3% lower than a year earlier. (newslink.mba.org) The Mortgage Bankers Association’s August 5 release also said the unadjusted market index fell 3% from the prior week. The purchase index decreased 4% on a seasonally adjusted basis and 5% on an unadjusted basis, while the refinance index declined 2% from the previous week. ### Why are year-ago comparisons getting worse? (cnbc.com) CNBC said the latest decline left total demand below year-ago levels after rates climbed to their highest point in over a year. The outlet reported that the increase in borrowing costs reduced the incentive for many homeowners to refinance and added pressure to affordability for buyers already facing elevated home prices. (newslink.mba.org) Earlier CNBC reports showed the same pattern building through July. On July 15, CNBC said mortgage rates had risen to their highest level since August 2025, pulling back homebuyer demand even as refinance activity briefly held up. By late May, the network reported the 30-year fixed rate had climbed 30 basis points over five weeks. ### Is this the same as Freddie Mac’s headline mortgage rate? (cnbc.com) Freddie Mac’s weekly survey and the Mortgage Bankers Association’s application survey track different things, and the headline numbers can differ. Yahoo Finance reported last week that Freddie Mac’s average 30-year fixed mortgage rate was 6.58%, while the Mortgage Bankers Association’s application-based contract rate for conforming loans reached 6.81% in the latest weekly data. (cnbc.com) Yahoo Finance said on July 30 that Freddie Mac’s 6.58% reading was the highest in about 11 months. The Mortgage Bankers Association’s August 5 data then showed contract rates moving higher still in the week ended July 31. ### What should readers watch next? Freddie Mac is scheduled to release its next Primary Mortgage Market Survey on August 6, providing another weekly snapshot of 30-year and 15-year borrowing costs. (finance.yahoo.com) The Mortgage Bankers Association will publish its next weekly applications survey after the close of the following survey week, giving lenders, buyers and homeowners another read on whether higher rates continue to suppress purchase and refinance demand. (finance.yahoo.com)