In Early-Q3, total mortgage applications ↑~2% weekly as purchase demand rebounded strongly enough to offset softer refinancing, showing many buyers stayed engaged despite pricier borrowing.
The purchase index ↑~6% from the prior week and stayed flat yearly, even with 30-yr conforming mortgage costs reaching their highest point since Early-Q3 2025.
While the main fixed rate moved higher, jumbo and 15-yr options eased, and ARM use rose toward ~8% as borrowers explored lower-cost structures.
An economist said growing inventory across many markets supported purchases, but next moves hinge on inflation trends, oil prices, and whether the central bank shifts.
Home sales are on track for a second-half recovery as inventory builds, with progress depending on whether purchase momentum holds if borrowing costs stay elevated.
