Mortgage Refinance Demand Plummets Over 40% in a Month Amid Rising Rates and Geopolitical Tensions

Refinance applications have sharply declined due to surging mortgage rates and ongoing concerns about the war with Iran. The drop highlights stress in the housing market, particularly for the real estate and construction sectors.

• Refinance applications have dropped over 40% in a month due to rising mortgage rates and geopolitical tensions.
• The 30-year fixed-rate mortgage average rose to 6.57%, the highest since last August, contributing to a 10.4% weekly decline in total mortgage applications.
• Refinance applications fell 17% for the week but are still 33% higher than the same week last year.
• Purchase applications for homes dropped 3% for the week and are only 1% higher than the same period in 2025.
• Mortgage rates saw a slight decline at the start of this week following potential de-escalation in the Iran conflict, though they remain elevated compared to pre-war levels.
• The housing market is experiencing stress, with the real estate and construction sectors most affected by the decline in refinance and purchase activity.