Borrowing costs are still climbing. According to the Mortgage Bankers Association, the average contract rate for a 30-year fixed mortgage in the week ending Oct. 9 edged up to 7.50%, a peak last reached in November 2023. Since late June, that benchmark has risen by almost a full percentage point.
Higher rates are showing up in fewer house-hunting loans. The MBA's purchase index, a proxy for mortgage applications on home purchases, fell another 4% last week. That is the sixth weekly slide in a row, the longest streak since July to August 2023, and it leaves the gauge at its lowest point since early 2025.
Refinance volume weakened as well, posting an eighth straight weekly drop and hitting a trough last seen in early 2025. The MBA's overall market index declined 2.7%, its sixth consecutive weekly dip.
Seven and a half percent changes what a buyer can afford immediately. Market Briefs reads housing data free every weekday.
There were hints of stabilization before rates jumped again. Based on recent data, the National Association of Realtors said purchases of previously owned homes ticked higher; however, because the metrics are tied to closings, they largely capture contracts inked before the most recent jump in borrowing costs. "The fourth-quarter outlook for closing activity will clearly be down, maybe even measurably down," said Lawrence Yun, NAR chief economist, citing higher rates. Separately, Redfin said contract signings fell 4% in September from August, the biggest monthly drop in more than three years.
The MBA has surveyed lenders weekly since 1990, collecting responses from institutions including mortgage bankers as well as commercial banks and thrifts, and its sample spans more than three quarters of US retail residential mortgage applications. Right now, that read shows higher borrowing costs arriving alongside softer demand. If you are watching housing-linked assets or budgeting for a move, the takeaway is simple: pricier mortgages are cooling activity, and that can ripple into everything from homebuilder backlogs to how long listings sit on the market.
Rates at these levels reshape the whole purchase market. Join Market Briefs free and follow it.
