Mortgage Rates Hit Nearly 3-Year High As Loan Applications Fall Again
By CU Today Staff —
WASHINGTON—Mortgage applications declined 2.7% last week as the average 30-year fixed mortgage rate climbed to 7.50%, its highest level since November 2023, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 9.
The MBA reported its seasonally adjusted Purchase Index fell 4% from the previous week and was 16% below year-earlier levels. Refinancing applications slipped 0.4% for the week and were down 56% from a year earlier, although refinances accounted for 37.7% of total applications, up from 37% the previous week.
“Mortgage applications decreased as rates moved higher last week. The 30-year fixed rate was 7.5%, the highest rate since November 2023 and more than a percentage point higher than a year ago,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “As a result, borrowers continue to rely more on ARM loans to help lower their monthly payments. The ARM share at 10.5 percent was at its highest level since October 2025. Last week’s decrease in refinances was mainly driven by a 5 percent drop in FHA refinance applications.”
The average rate on jumbo mortgages rose to 7.49% from 7.39%, while the 15-year fixed rate increased to 6.87% from 6.71%. FHA-backed 30-year mortgage rates climbed to 7.19% from 7.14%, and the average 5/1 adjustable-rate mortgage rate increased to 6.54% from 6.43%. FHA loans accounted for 16.4% of applications, while VA loans represented 11.9%.
Originally reported by CU Today.