Mortgage applications slumped 10% last week as rates rose for the first time in three weeks on tariff worries, the Mortgage Bankers Association said, citing its Weekly Mortgage Applications Survey.            

The average contract interest rate for conforming 30-year mortgages of $806,500 or less ticked five basis points higher to 6.82% from 6.77% the week before, while the rate for 30-year fixed-rate mortgages backed by the Federal Housing Administration rose to 6.52% from 6.51%.       

By mortgage type, purchase applications fell 12% week over week and rose 13% year over year, while refinancing activity slid 7% week over week and rose 25% year over year.    

“Treasury yields finished higher last week on average despite an intra-week drop, driven partly by renewed concerns of the impact of tariffs on the economy. As a result, mortgage rates rose after two weeks of declines, which contributed to slower application activity,” MBA Deputy Chief Economist Joel Kan said. “Jumbo rates were lower than conventional rates for the third straight week, as some depositories may be positioning themselves for growth in balance-sheet lending. 

“Purchase applications remained sensitive to both the uncertain economic outlook and the volatility in rates and declined to the slowest pace since May. Refinance applications also dipped because of higher rates, with refinance applications falling, led by [Department of Veterans Affairs] refinances partially reversing their previous week’s gain, dropping 22%.”