US mortgage applications fell 6% last week as borrowing rates rose for a sixth consecutive week, weighing on refinancing activity and demand from homebuyers, according to Mortgage Bankers Association (MBA) data released Wednesday. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $832,750 or less increased to 7.30% from 7.12% in the week ending Sept. 25 to its highest since November 2023. Points, including the origination fee, rose to 0.75 from 0.73 for loans with a 20% down payment. Applications to refinance a home loan declined 9% from the previous week and were 56% below their level a year earlier. Refinancing accounted for 38.3% of total applications, down from 39.3%. Mortgage applications to purchase a home fell 4% on a weekly basis and were 14% lower than a year ago, as higher borrowing costs continued to squeeze affordability. Borrowing costs climbed further this week. A separate daily index from Mortgage News Daily showed the average 30-year fixed mortgage rate reaching 7.58% on Tuesday, up from 7.50% on Monday and its highest since Nov. 1, 2023.

 

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