Mortgage rates are rising again, but homebuyers are trickling back

In an aerial view, two-story single family homes line the streets on Jan. 14, 2026 in Thousand Oaks, California. Kevin Carter | Mortgage rates began climbing again last week, and that took a toll on refinance demand. Homebuyers, however, seem finally to be ready for the spring market. Total mortgage application volume fell 1.6% 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, increased to 6.37% from 6.35%, with points remaining unchanged at 0.61, including the origination fee, for loans with a 20% down payment. Refinance demand, which is always most sensitive to daily moves in interest rates, fell 4% for the week and were 51% higher than the same week one year ago. Last year at this time, the rate on the 30-year fixed was about a half 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 rose 1% for the week and were 21% higher year-over-year. More supply has come onto the market, and consumers appear to be getting used to the ever-changing news regarding the war with Iran. …