Mortgage rates are now falling but demand is still weaker

In an aerial view, a residential neighborhood is seen on June 4, 2026 in Pembroke Pines, Florida. Joe Raedle | Getty Images A mixed week for mortgage rates resulted in less demand from both current homeowners and potential homebuyers. Total mortgage application volume fell 3.8% last week 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, remained unchanged at 6.60%, with points remaining unchanged from 0.63, including the origination fee, for loans with a 20% down payment. "Last week's CPI data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week," said Mike Fratantoni, MBA's SVP and chief economist in a release. Applications to refinance a home loan dropped 5% for the week and were 17% higher than the same week one year ago. Last year at this time mortgage rates were nearly a quarter of a percentage point higher. Get Property Play directly to your inbox CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today . Applications for a mortgage to purchase a home fell 3% for the week and were 3% higher than the same week one year ago. …