High mortgage rates lead homeowners to tap equity over refinancing

The average 30-year fixed mortgage rate rose to 6.95%, the highest since May 2025, following a Federal Reserve rate hike. Refinance applications dropped 9%, with refinancing now only 2% of inquiries, while home-equity products surged to 76%. Purchase rates vary widely among lenders, with a significant cost gap. Builder confidence fell to its lowest since 2025 amid weaker demand and rising costs. The bond market shows no immediate relief.