Mortgage Applications Drop 4.2% as 30-Year Rate Hits 7.49%
Updated
Updated · CNBC · Oct 7
Mortgage Applications Drop 4.2% as 30-Year Rate Hits 7.49%
3 articles · Updated · CNBC · Oct 7
Summary
Total U.S. mortgage application volume fell 4.2% last week, with the average 30-year fixed conforming rate climbing to 7.49% from 7.30%—the highest in nearly three years.
Refinance demand led the decline, dropping 8% on the week and 56% from a year earlier as higher borrowing costs left few homeowners with any incentive to replace existing loans.
Purchase applications slipped 2% from the prior week and 15% year over year, with FHA purchase demand down 6% as affordability pressures spread across loan types.
ARMs held a 10.3% share of applications as more borrowers sought lower initial payments, far above the sub-3% share seen when pandemic-era fixed rates were at record lows.
Mortgage News Daily said rates eased slightly this week to 7.56% for the average lender, hinting momentum may be stalling even as levels remain near the highest since 2003.