Red-hot refinance demand retreats after tiny bump higher in mortgage rates

Last week, mortgage rates increased slightly, causing a slight dip in total mortgage application volume. The average interest rate for 30-year fixed-rate mortgages also rose slightly. Refinance applications fell, but were still significantly higher than a year ago. Home purchase applications increased, indicating a warming fall market. With increasing home inventories and lower mortgage rates, buyers have more options and better affordability. Mortgage rates decreased slightly at the start of this week due to bond yield fluctuations. The upcoming monthly employment report may have an impact on interest rates.