Rising interest rates in the U.S. mortgage market led to a decline in applications in the week ending September 25. Seasonally adjusted data from the Mortgage Bankers Association (MBA) showed that total mortgage applications fell 6 percent from the previous week.

Mortgage rates rose
The average rate on 30-year mortgages rose from 7.12 percent to 7.3 percent. This brought the rate to its highest level since November 2023.
Rates on 15-year mortgages also increased. The average rate rose from 6.43 percent to 6.56 percent over the same period.

Home purchase and refinancing applications declined
Following the rise in interest rates, mortgage applications to purchase homes fell 4 percent. Refinancing applications declined 9 percent.

Joel Kan, deputy chief economist at the MBA, said that mortgage rates reaching their highest level in nearly three years had prompted people planning to borrow to wait. Kan said the sharp rise in rates in recent weeks had contributed to the decline in mortgage applications.