US Mortgage Applications Fall for Seventh Straight Week

US mortgage applications fell 5.3% in the week ending October 16, marking a seventh consecutive weekly decline and reaching their lowest level since January 2025, according to the Mortgage Bankers Association. The continued drop reflects elevated borrowing costs, with the average 30-year fixed mortgage rate edging lower last week but remaining near a three-year high. Rising bond yields and expectations that the Federal Reserve will keep interest rates higher for longer, amid renewed inflationary pressures from surging energy prices linked to the Iran war, have continued to weigh on housing demand. Applications for home purchases declined by 7.3% from the previous week, while refinancing applications fell 2%.

The volume of mortgage applications in the US fell by 2.7% in the week ending October 9th, marking the sixth consecutive decline to the lowest level since January 2025, according to data from the Mortgage Bankers Association. The drop tracked a sharp increase in mortgage rates over the period, as the benchmark 30-year fixed rate averaged a near-three-year high of 7.5%. Yields on long-term securities continued to surge at the turn of the month despite Treasury efforts to tame the long end by increasing bill issuance and expanding buybacks of nominal notes and bonds. Applications to refinance a loan, which are sensitive to short-term changes in interest rates, fell by 0.45% from the previous week, while purchase applications declined by 0.40%.

The volume of mortgage applications in the US fell by 4.2% in the week ending October 2, marking the fifth consecutive decline and reaching its lowest level since January 2025, according to data from the Mortgage Bankers Association. The drop tracked a sharp increase in mortgage rates over the period, as the benchmark 30-year fixed rate averaged a near-three-year high of 7.49%. Yields on long-term securities continued to surge at the turn of the month despite Treasury efforts to tame the long end by increasing bill issuance and expanding buybacks of nominal notes and bonds. Applications to refinance a loan, which are sensitive to short-term changes in interest rates, fell by 7.5% from the previous week, while purchase applications declined by 2.1%.