Purchase demand grows as mortgage rates fall slightly

Mortgage applications remained nearly flat, rising 0.04% as a slight drop in oil prices lowered the 30-year fixed rate to 6.57%, boosting purchase applications by 1% while refinance activity fell 1%. Purchase applications were 3% higher than the previous year, supported by improved inventory and cooling home-price growth. Adjustable-rate mortgage demand dropped to 7.6%, the lowest since January 2026, amid a flattening yield curve.