US Mortgage Applications Fall 2.7% as 30-Year Rates Hit 7.5%
US home loan applications dropped by 2.7% for the week ending October 9th, marking the sixth consecutive weekly decline. The drop pushed overall application volume down to its lowest point since January 2025, driven by a steep increase in borrowing costs.
The pullback in home financing followed a sharp climb in mortgage rates, with the average benchmark 30-year fixed rate reaching 7.5%, close to a three-year high. Long-term government bond yields kept climbing at the turn of the month, even after Treasury measures were implemented to curb long-end yield spikes by issuing more short-term bills and broadening bond buyback programs.
Slowing demand affected both refinancing and home purchases across the housing market. Refinance applications fell by 0.45% compared to the prior week, while applications for purchase loans slipped by 0.40%.
Key points
- US mortgage application volume fell 2.7% in the week ending October 9th.
- Applications reached their lowest level since January 2025 following six straight weeks of decline.
- The average benchmark 30-year fixed mortgage rate reached a near-three-year high of 7.5%.
- Refinance applications dropped 0.45% from the previous week, while purchase applications fell 0.40%.
- Long-term Treasury yields continued to rise despite Treasury efforts to expand bill issuance and bond buybacks.
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Why are US mortgage applications declining?
US mortgage applications are falling due to rising mortgage rates, with the average benchmark 30-year fixed rate reaching a near-three-year high of 7.5%.
How much did US mortgage applications drop in October 2026?
Mortgage application volume fell by 2.7% during the week ending October 9th, marking a sixth consecutive weekly drop and hitting a 20-month low.
How did purchase and refinance applications perform?
Refinance applications decreased by 0.45% from the previous week, while home purchase applications dropped by 0.40%.