Weekly Mortgage Applications Drop as Key 30-Year Rate Hits Highest Since November 2023

03:13 PM EDT, 09/30/2026 (MT Newswires) -- Mortgage applications in the US fell last week as a key 30-year rate hit its highest level since November 2023, the Mortgage Bankers Association said Wednesday. The market composite index, which measures loan application volume, decreased 6% sequentially in the week through Sept. 25 on both seasonally adjusted and unadjusted bases, according to the report. The average interest rate for the key 30-year fixed mortgages with conforming loan balances of $832,750 or less jumped to 7.30% from 7.12% a week ago. The rate rose for a sixth straight week to reach its highest since November 2023, according to MBA Deputy Chief Economist Joel Kan. "Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines," Kan said. "(Adjustable-rate mortgage) loans, with rates around 80 basis points lower than fixed-rate loans, accounted for 10.3% of applications, the highest share since October 2025." For loan balances higher than $832,750, the mortgage rate climbed to 7.27% from 7.15%. For 15-year loans, the rate increased to 6.56% from 6.43% week to week, according to the report. On Tuesday, S&P Global (SPGI) division S&P Dow Jones Indices said US home price growth accelerated annually in July. Separately, Oxford Economics said it does not expect the momentum in pricing growth to last, "as favorable base effects are largely behind us and higher mortgage rates will take a toll on housing activity." The refinance index dropped 9% sequentially last week, while the seasonally adjusted purchase index fell 4%, the MBA report showed Wednesday. Purchase and refinance applications both dropped to their "slowest weekly pace" since 2025, Kan said. "Government refinances declined 13%, with both (Federal Housing Administration and Veterans Affairs) applications experiencing double-digit decreases over the week." Recently, homebuilder KB Home (KBH) cut its full-year housing gross profit margin estimates amid weaker market conditions and affordability pressures. Rival Lennar (LEN) reported weaker-than-expected fiscal third-quarter results as affordability challenges slowed home-buying activity. Earlier this month, the Federal Reserve delivered its first interest rate hike in just over three years to curb elevated inflation, while signaling that another rate increase could happen later this year. Price: 46.78, Change: -0.64, Percent Change: -1.35