Mortgage demand continued its downward spiral last week as higher interest rates pushed prospective homebuyers and homeowners further to the sidelines, according to the latest weekly survey from the Mortgage Bankers Association (MBA).
- Total mortgage applications fell 2.7% from the previous week, marking the sixth consecutive weekly decline and the lowest level of mortgage demand since January 2025.
Why it matters: The biggest weakness came from homebuyers. Purchase applications dropped 4.0% from the previous week, also reaching their lowest level since January 2025. The decline suggests that rising borrowing costs are continuing to weigh on an already sluggish housing market.
Refinancing remains weak: Refinance applications declined a more modest 0.4% from the previous week but also fell to their lowest level since January 2025. With mortgage rates near three-year highs, fewer homeowners have a financial incentive to refinance their existing loans.
Rates barely budged: The average 30-year fixed mortgage rate increased just one basis point to 7.50%, the smallest weekly increase since August. However, that was still enough to push rates to their highest level since November 2023.
The bottom line: Mortgage rates may be showing signs of stabilizing, but demand has yet to follow. With purchase and refinance applications both at their lowest levels since January 2025, the housing market remains under significant pressure heading into the final months of the year.