Mortgage Refinance Applications Plunge 18% as 30-Year Rate Hits 6.65%

5 articles · Updated · CNBC · May 27

Refinance applications fell 18% last week, dragging total mortgage application volume down 8.5% and cutting refinancings to 38% of all applications—the lowest share since June 2025.
The average 30-year fixed mortgage rate rose to 6.65% from 6.56%, up 30 basis points in five weeks to its highest level since August 2025, making savings from refinancing harder to achieve.
Purchase applications slipped 0.4% from the prior week and were only 5% above a year earlier, while the average purchase loan size hit a survey record $473,600 as smaller borrowers pulled back.
Refinance demand was still 19% higher than a year ago because rates were 33 basis points higher then, and mortgage rates edged slightly lower at the start of this week as easing Iran-war fears pushed bond yields down.

As global events sway mortgage rates, what hidden risks in the bond market could suddenly reverse the trend?

With fewer people buying homes, why are average mortgage amounts climbing to a record-breaking $473,600?