US mortgage applications declined 5.3% in the week ending October 16, marking the seventh straight weekly drop and falling to their lowest level since January 2025, according to the Mortgage Bankers Association. The ongoing slide underscores the impact of elevated borrowing costs: although the average 30-year fixed mortgage rate edged slightly lower last week, it remains close to a three-year high.
Rising bond yields and expectations that the Federal Reserve will keep interest rates higher for longer—amid renewed inflationary pressures driven by surging energy prices linked to the Iran war—continue to dampen housing demand. Applications for home purchases fell 7.3% from the previous week, while refinancing applications declined 2%.
