Mortgage Rates Hit 7.3%: Application Volume Plunges to Slowest Pace Since 2025

Mortgage applications fell 6% last week, as the Federal Reserve interest rate hike continues to slow the market, according to the Mortgage Bankers Association.For the week ending Sept. 25, MBA's Market Composite Index—a measure of total mortgage loan application volume—fell 6% on a seasonally adjusted basis from one week earlier.The seasonally adjusted Purchase Index, which measures the volume of mortgage applications to purchase a single-family home, also decreased 4% from one week earlier. Purchase applications were down 14% from a year ago. The refinancing index also declined 9% for the week and was 56% lower than the same week one year ago.Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist, attributed the decline to the recent surge in rates. “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 Kan."Mortgage applications fell by 6 percent 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...