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Mortgage application volume falls as rates hit highest in nearly 3 years

The Mortgage Bankers Association said the 30-year fixed rate rose to 7.3%, while refinance applications dropped 9% for the week ending Sept. 25.

Reported · Written up by our desk · Mortgages

Mortgage demand softened again last week as mortgage rates climbed to their highest level in nearly three years, according to Mortgage News Daily citing data from the Mortgage Bankers Association.

For the week ending September 25, MBA reported total mortgage application volume fell 6%, with the seasonally adjusted Purchase Index down 4%. Refinance applications dropped 9%, reaching the slowest weekly pace since 2025.

Refinance activity was hit hardest by the rate spike, with the refinance index now 56% lower than a year earlier. Government refinance applications fell 13% from the prior week.

MBA Vice President and Deputy Chief Economist Joel Kan said borrowers are being pushed to the sidelines, noting that the 30-year fixed rate reached 7.30%, its highest level since November 2023. The report also found ARM loans accounted for 10.3% of all applications, the highest share since October 2025.

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