Mortgage rates reached their highest level since May, resulting in declining mortgage demand. Total mortgage application volume dropped by 4.4 compared to the previous week, reaching its lowest monthly level. The average interest rate for 30-year fixed-rate mortgages increased to 6.85, with points rising to 0.65. A separate survey indicated that the rate surpassed 7 on Thursday and continued to rise. Consequently, demand for home purchases decreased by 5 for the week and was 22 lower compared to last year. Refinance applications also fell by 4 and were 30 lower than the previous year. The average loan size for purchase applications declined to $423,500, the lowest since January 2023, likely influenced by reduced homebuying in high-priced markets and increased activity in lower-price tiers.