NEW YORK– Mortgage applications fell 1.2% last week despite a third consecutive weekly decline in mortgage rates, according to data from. The Mortgage Bankers Association’s seasonally adjusted index.
Applications to buy a home dropped 2% from the previous week and were 19% below the level a year earlier. Refinance applications edged up 0.1% for the week but were down 60% from a year earlier, according to the MBA.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less fell to 7.3% from 7.37%. Points, including the origination fee, declined to 0.75 from 0.76 for loans with a 20% down payment.
“Mortgage rates drifted down to their lowest level since September 2026 last week in the wake of the Federal Reserve’s decision to hold on additional rate hikes at its October meeting,” said Mike Fratantoni, the MBA’s senior vice president and chief economist.
Rates remained about a percentage point higher than a year earlier, giving borrowers little incentive to refinance, CNBC reported.
Up in ARMs
More borrowers turned to adjustable-rate mortgages to reduce their initial payments. Their share of applications reached its highest level since September 2025, Fratantoni said. The average rate on a 5/1 adjustable-rate mortgage fell to 6.29% from 6.41%. Such loans carry the risk of higher payments when their rates reset.
Mortgage rates moved slightly higher at the start of this week following a stronger-than-expected report on job openings, according to a separate survey by Mortgage News Daily cited by CNBC.
Matthew Graham, Mortgage News Daily’s chief operating officer, said stronger labor market data generally puts upward pressure on rates. He also pointed to a modest increase in technology stocks Tuesday, saying weakness in that sector had helped push rates lower in recent weeks.
