US mortgage applications declined by 2.7% in the week ending October 9th, marking a sixth straight weekly drop and reaching their lowest level since January 2025, according to the Mortgage Bankers Association. The pullback coincided with a sharp rise in borrowing costs, as the benchmark 30‑year fixed mortgage rate climbed to 7.5%, its highest level in nearly three years.
Yields on longer‑dated securities continued to surge at the turn of the month, despite Treasury efforts to ease pressure at the long end of the curve by increasing bill issuance and expanding buybacks of nominal notes and bonds. Refinancing applications, which are particularly sensitive to short‑term rate moves, slipped 0.45% from the prior week, while applications for home purchases fell 0.40%.
