US Mortgage Applications Fall in the Week Ending October 2

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Friday, October 2, the Market Composite Index—a measure of mortgage loan application volume—decreased 4.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4.0%.

The Refinance Index decreased 8.0% from the previous week and was 56.0% lower than the same week one year ago.

The seasonally adjusted Purchase Index decreased 2.0% from one week earlier. On an unadjusted basis, the Purchase Index decreased 2.0% compared with the prior week and was 15.0% lower than the same week one year ago.

In remarks accompanying the release, MBA Vice President and Deputy Chief Economist Joel Kan said:

“Mortgage rates moved to their highest level in almost three years last week, with the 30-year fixed rate reaching 7.49% as both Treasury rates increased and spreads widened with the increase in rate volatility. Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market. With rates roughly a percentage point higher than a year ago, refinance applications last week were at the lowest level since 2025 and fell to less than half of last year’s pace.

Purchase activity decreased across all loan types with FHA purchase applications falling the most, declining 6%, as these higher rates add to ongoing affordability challenges for many homebuyers. As noted in recent weeks, a higher share of borrowers are opting for ARMs to lower their initial payments, with the ARM share steady at 10.3% last week.”