WASHINGTON — Mortgage applications fell 6% from the previous week as the average rate on a 30-year fixed mortgage climbed to its highest level since November 2023, HousingWire reported, citing Mortgage Bankers Association data.
Purchase and refinance applications both dropped to their slowest weekly pace since 2025 as rising borrowing costs pushed prospective borrowers to the sidelines, according to Joel Kan, the MBA’s vice president and deputy chief economist.
The average contract rate for a conforming 30-year fixed mortgage increased for a sixth consecutive week, reaching 7.3%, up from 7.12% the previous week.
“Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines,” Kan said.
Purchase And Refinance Activity Declines
The MBA’s refinance index fell 9% from the previous week and was 56% below its level during the same week a year earlier, HousingWire reported.
The seasonally adjusted purchase index declined 4%. Without seasonal adjustments, purchase applications fell 5% from the previous week and were 14% lower than a year earlier.
Government refinance applications decreased 13%, with both Federal Housing Administration and Department of Veterans Affairs applications recording double-digit weekly declines, Kan said.
Refinancing accounted for 38.3% of total mortgage applications, down from 39.3% the previous week.
Adjustable-rate mortgages gained share as borrowers sought lower rates. ARMs accounted for 10.3% of applications, their highest share since October 2025, according to Kan.
“ARM loans, with rates around 80 basis points lower than fixed-rate loans, accounted for 10.3% of applications,” he said.
Rates Rise Across Loan Categories
Average contract interest rates increased across all mortgage categories included in the report:
- Conforming 30-year fixed mortgages: 7.3%, up from 7.12%, for loan balances of $832,750 or less.
- Jumbo 30-year fixed mortgages: 7.27%, up from 7.15%, for balances above $832,750.
- FHA-backed 30-year fixed mortgages: 6.97%, up from 6.78%.
- 15-year fixed mortgages: 6.56%, up from 6.43%.
- 5/1 adjustable-rate mortgages: 6.47%, up from 6.1%.
FHA loans represented 16.7% of total applications, unchanged from the previous week. The VA share declined to 11.9% from 12%, while the Department of Agriculture share fell to 0.5% from 0.6%, HousingWire reported.
Separate Index Shows Weaker Demand
Xactus’ Mortgage Intent Index also declined, falling 7.6% from the previous week to 108.9, its lowest nonholiday reading of the year, according to HousingWire.
The index, which measures aggregated, anonymized credit-pull activity across the Xactus Intelligent Verification Platform, was approximately 18.6% below its reading during the same week last year.
“The Xactus Mortgage Intent Index continued to deteriorate as upward pressure on mortgage rates weighed on borrower activity,” said Thomas Lloyd, the company’s chief strategy officer.
Lloyd said the decline underscored significant headwinds facing the mortgage industry heading into the fourth quarter and signaled continued weakness in borrower demand.
