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Mortgage Rates Rebound to Mid-6% Range as Demand Cools

Geopolitical tensions push up oil prices, lift Treasury yields, keep mortgage costs elevated.

Overview

  • Freddie Mac’s survey Thursday put the 30-year fixed average at 6.37%, marking a second straight weekly increase after a brief April easing.
  • Mortgage Bankers Association data for the week ending May 1 showed total applications down 4.4%, with refinance requests off 5% and refis at about 42% of volume, the lowest share since August 2025.
  • The average purchase loan size in the MBA survey rose to a record $467,300, signaling that first-time and lower-priced buyers are pulling back while bigger-budget shoppers keep buying.
  • Analysts tie the rate rebound to the Iran conflict raising oil costs and the 10-year Treasury yield, which lenders use to price mortgages, though day-to-day moves turned lower late this week on hopes for de-escalation.
  • Rates remain below year-ago levels (6.37% now vs. 6.76%), and softer new-home prices plus more listings offer some relief, yet the market looks K-shaped with equity-rich buyers active and many entry-level shoppers sidelined.