Mortgage Applications Slide 6% As 30-Year Rate Hits 7.3%
By CU Today Staff —
WASHINGTON—Mortgage applications fell 6% last week as the average rate on a 30-year fixed mortgage climbed to its highest level in nearly three years, according to the Mortgage Bankers Association.
MBA said its Market Composite Index declined 6% on a seasonally adjusted basis for the week ending Sept. 25. Refinance applications fell 9% from the previous week and were down 56% from a year earlier, while purchase applications declined 4% for the week and were 14% below year-ago levels.
“Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines. The 30-year fixed rate increased for the sixth consecutive week to 7.3%, the highest rate since November 2023,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. “Mortgage applications fell by 6% due to the recent surge in rates, with purchase and refinance applications both declining to their slowest weekly pace since 2025. Government refinances declined 13%, with both FHA and VA applications experiencing double digit decreases over the week."
The average contract rate on conforming 30-year fixed mortgages increased to 7.30% from 7.12%, while the 15-year rate rose to 6.56% from 6.43%. Adjustable-rate mortgages accounted for 10.3% of applications, the highest share since October 2025. Added Kan, “ARM loans, with rates around 80 basis points lower than fixed rate loans, accounted for 10.3 percent of applications, the highest share since October 2025.”
Originally reported by CU Today.