In an aerial view, two-story single family homes line the streets on Jan. 14, 2026 in Thousand Oaks, California. Kevin Carter | Getty Images Mortgage rates began climbing again last week, and that took a toll on refinance demand. Homebuyers, however, seem finally to be ready for the spring market. Total mortgage application volume fell 1.6% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, increased to 6.37% from 6.35%, with points remaining unchanged at 0.61, including the origination fee, for loans with a 20% down payment. Refinance demand, which is always most sensitive to daily moves in interest rates, fell 4% for the week and were 51% higher than the same week one year ago. Last year at this time, the rate on the 30-year fixed was about a half a percentage point higher.…