Mortgage applications slip as rates climb to three-year high
U.S. mortgage applications fell 4.2% for the week ending Oct. 2 as rates rose to their highest level in almost three years.
According to the Mortgage Bankers Association, mortgage applications across the United States declined 4.2% for the week ending Oct. 2, reflecting the impact of rising borrowing costs. Freddie Mac posted a weekly average rate of 7.4% for a 30-year fixed-rate loan, up 0.12 percentage points and the highest level since November 2023. The association’s refinancing index dropped 8% from the previous week and is 56% lower than the same week a year ago.
More borrowers are turning to adjustable-rate mortgages, which now represent just over 10% of all applications, up from 7% at the start of 2026. The average rate for a five-year ARM was 6.43%, offering a lower initial payment but exposing borrowers to future rate adjustments.
Why it matters
Higher mortgage rates are discouraging homebuyers and refinancers, signaling a slowdown in the housing market.
How this story developed
- Sep 22 Mortgage rates near 7% tighten U.S. housing market, dampening buyer demand
- Oct 7 The average 30‑year fixed mortgage rate rose to 7.53% on Friday.
In this story
Related stories
5 in this thread