Why Mortgage Demand Just Dropped Nearly 13%—And What It Means for Boston & South Shore Buyers

Weekly Mortgage Applications Plunge as Rates Rise
Mortgage demand took a sharp dive last week, dropping nearly 13% nationwide. According to the Mortgage Bankers Association, total mortgage applications fell by 12.7% as interest rates climbed to a two-month high. For buyers and sellers across Greater Boston, the South Shore, and Cape Cod, the shift is yet another reminder of how fast the real estate landscape can change. 

What Happened?

The average interest rate for a 30-year fixed mortgage rose to 6.90%, up from 6.81% the week before. That’s the highest level we’ve seen in two months and nearly 30 basis points higher than just two weeks ago.

• Refinance activity dropped a significant 20% week over week.

• Purchase applications fell 7%, and were only 6% higher than the same week last year.

Despite being lower than 2023’s peak rates, the recent volatility—paired with economic uncertainty and stock market concerns—has made both buyers and sellers more cautious.

What It Means for You

If you're house-hunting on the South Shore or in Boston right now, here’s the silver lining:

• Less competition. Higher rates may sideline some buyers, giving active shoppers more breathing room.

• Stable equity. Most local homeowners still have strong equity positions, and well-priced homes are still moving.

For sellers, this is a reminder that pricing and presentation matter more than ever. The right strategy—especially in markets like Hingham, Cohasset, or South Boston—can still drive strong results.

Stay Informed, Stay Ahead

From fluctuating interest rates to fast-moving local trends, real estate today requires more insight and strategy than ever. Whether you're planning to buy, sell, or just want to understand your options, The Charles King Group is here to help you navigate it all.

Have questions about buying or selling in this market?
Reach out to us anytime—we’re happy to provide tailored advice based on your goals.

CNBC Article