FX.co ★ US Mortgage Rates Rise for 1st Time in a Month

The average contract rate for 30-year fixed-rate mortgages on conforming loans of $806,500 or less in the U.S. increased to 6.24% for the week ending January 23. This marks the first rise in four weeks, up from 6.16% in the previous week, which had been the lowest rate since September 2024, as reported by the Mortgage Bankers Association. Consequently, mortgage applications fell by 8.5% following a surge over the preceding two weeks. Refinancing applications saw a significant drop of 15.7%, while the purchase index slightly decreased by 0.4%. Joel Kan, Vice President of the MBA, noted, "FHA refinance activity deviated from the overall trend and saw an increase, as FHA rates stayed approximately 20 basis points lower than conforming rates. With rates maintaining in the 6% range, the refinance market is likely to continue being affected by week-to-week rate fluctuations."