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    Mortgage rates may not have jumped this week, but they didn’t fall steeply either. The average rate on 30-year loans now sits at 3.55% — down just one basis point from last week but up from 2.73% a year ago.

    Though there was no huge uptick, it seems this week’s rates were enough to turn off homebuyers. According to the Mortgage Bankers Association, applications to purchase a home declined 2% for the week. Refinances decreased a whopping 13% and made up just 56% of loan activity — down from 60% the week prior.

    “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “After almost two years of lower rates, there are not many borrowers left who have an incentive to refinance. Of those who are still in the market for a refinance, these higher rates are proving much less attractive to them.” 

    It’s not just rising rates that are making their mark, though. Skyrocketing home prices are having an impact too.

    According to MBA, the average purchase loan size soared to $433,500 this week — far surpassing the previous high of $419,500 set a few weeks ago.

    More in mortgage & housing news

    • According to, national rents jumped more than 10% across 2021. The median U.S. rent now clocks in at $1,781.
    • A new Zillow report shows that housing inventory is now down 40% from pre-pandemic levels. There are now less than 1 million homes for sale across the nation.
    • Home prices jumped 17.5% between November 2020 and November 2021, according to the latest FHFA Housing Price Index. Prices rose the most in the Mountain Census division, which saw a 22.8% uptick over the year.
    • Nearly a third of all homebuyers are looking to move to a different metro area, according to a Redfin analysis. That’s up from just over a quarter in late 2019. The most in-demand metros are Miami, Phoenix, and Las Vegas.

    This week in mortgage rates

    Rates remained largely steady this week. ARMs saw the biggest change with a 10-basis-point uptick over last week’s 2.60%.:

    Make sure to check back here next week for the latest mortgage rates and news.

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