Mortgage applications fall 6% as rates hit highest level in three years

Mortgage applications decreased 6% from one week earlier, according to data from the Mortgage Bankers Association’s weekly mortgage applications survey for the week ending Sept. 25, 2026. On an unadjusted basis, the index decreased 6% compared with the previous week. The refinance index decreased 9% from the previous week and was 56% lower than the same week one year ago. The seasonally adjusted purchase index decreased 4% from one week earlier, and the unadjusted purchase index decreased 5% compared with the previous week and was 14% lower than the same week one year ago. “Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines. The 30-year fixed rate increased for the sixth consecutive week to 7.3%, the highest rate since November 2023,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. Kan continued, “Mortgage applications fell by 6% due to the recent surge in rates, with purchase and refinance applications both declining to their slowest weekly pace since 2025. Government refinances declined 13%, with both FHA and VA applications experiencing double-digit decreases over the week. Added Kan, “ARM loans, with rates...