MBA: Mortgage Applications Fall 4.2% as Refinance Index Hits Its Lowest Since 2025
WASHINGTON, Oct. 7 — Mortgage applications fell 4.2% in the week ending Oct. 7 on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey as reported by Realtor.com. The Purchase Index dipped 2% from the prior week and was down 15% from a year ago. The refinance index plunged 8% to its lowest level since 2025, at less than half of last year's pace.
'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,' said Joel Kan, MBA's vice president and deputy chief economist. MBA's average contract rate on 30-year fixed conforming loans hit 7.49% in its survey; Freddie Mac's figure for the comparable period was 7.28% for the week ending Oct. 1. The two organizations use different loan samples and methodologies, so the figures are not directly interchangeable.
The refinance share of mortgage activity decreased from 38.3% to 37% in one week, while the adjustable-rate share rose to 8.1% of total applications as some borrowers turned to lower initial rates. The FHA share ticked down from 16.7% to 16.4%, and the VA share from 11.9% to 11.8%. The drop came as a global bond selloff pushed Treasury yields — and mortgage rates — to their highest in about three years.
A methodology note: MBA application data are not screened by credit and down payment the way Freddie Mac's survey sample is, so its contract rates usually run above the PMMS reading. Only when the two series move in the same direction do they confirm the rate trend — and this week both moved up, indicating borrowing costs were still rising at the start of the fourth quarter.
Source: MBA Weekly Mortgage Applications Survey, reported by Realtor.com, Oct. 7.
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Published by GSM · USA (original Chinese edition)
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