But mortgage demand took a tumble last week as application activity dropped 6.4%, led by a 10% decline in refinances. “Mortgage rates climbed to their highest level in nearly a year last week, continuing to weigh on both refinance and purchase activity. Last week, the Fed kept rates unchanged for a fifth straight meeting. “While President Trump has pushed for lower rates, Warsh indicated that mortgage rates will likely improve through broader monetary policy rather than immediate Fed fund rate cuts,” Ishbia said. He called the 2026 summer purchase market “really good” despite higher interest rates and affordability hurdles.