Weekly Real Estate News
Mortgage demand weakened again as borrowing costs climbed to their highest level in almost three years, adding fresh pressure to an already rate-sensitive housing market.
Total mortgage application volume fell 6% on a seasonally adjusted basis in the week ending Sept. 25, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Purchase applications declined 4% from the prior week, while refinance applications fell 9%.
The average contract rate for conforming 30-year fixed mortgages rose to 7.30% from 7.12%, the sixth consecutive weekly increase and the highest level since November 2023. Points increased to 0.75 from 0.73 for loans with an 80% loan-to-value ratio.
Purchase and refinance demand both retreated
The seasonally adjusted Purchase Index declined 4% for the week. On an unadjusted basis, purchase applications were 14% below the same week a year earlier. Refinance applications were down 56% year over year.
Joel Kan, MBA’s vice president and deputy chief economist, said the rate increase pushed borrowers to the sidelines and left both purchase and refinance applications at their slowest weekly pace since 2025.
Government refinance activity was particularly weak, declining 13% as both FHA and VA refinance applications posted double-digit weekly decreases.
Borrowers also showed greater interest in adjustable-rate mortgages as the gap between fixed and ARM pricing widened. ARMs accounted for 10.3% of application activity, the highest share since October 2025. MBA said ARM rates were roughly 80 basis points below fixed rates.
The rate pressure extended beyond conforming loans
The average contract rate for jumbo 30-year mortgages increased to 7.27% from 7.15%. FHA-backed 30-year rates rose to 6.97% from 6.78%, while the 15-year fixed rate increased to 6.56% from 6.43%.
The 5/1 ARM rate climbed sharply as well, reaching 6.47% from 6.10%.
The refinance share of total mortgage activity slipped to 38.3% from 39.3%. FHA applications held at 16.7% of the market, while the VA share edged down to 11.9%.
The latest reading is a material deterioration from the prior week, when MBA reported a 7.12% conforming rate. For lenders, brokers and real estate professionals, the six-week rate climb is now showing up clearly in application behavior: fewer prospective buyers are applying, refinancing economics have deteriorated further, and more borrowers are considering adjustable-rate products to reduce initial payments.
MBA’s survey covers closed-end residential mortgage applications originated through retail and consumer-direct channels and has been conducted weekly since 1990.
