US mortgage applications fell 6% in the week ending September 25, marking a fourth straight weekly decline as borrowing costs continued to climb. The average rate on 30‑year fixed mortgages with conforming balances rose to 7.30% from 7.12%, its highest level since November 2023.
Rising rates have hit refinancing demand particularly hard. Refinance applications dropped 9%, and their share of total mortgage activity slipped to 38.3% from 39.3%. Government-backed refinancing was even weaker, falling 13% as both FHA and VA refi applications saw double-digit declines, according to MBA economist Joel Kan.
Purchase demand also softened, with applications down 4% from the previous week. Prospective buyers are contending with the dual headwinds of elevated mortgage rates and continued year-over-year increases in home prices.
By contrast, adjustable-rate mortgages (ARMs)—which currently offer rates about 80 basis points below comparable fixed loans—accounted for 10.3% of applications, the largest share since October 2025.
