The average rate on a 30-year fixed-rate mortgage rose 18 basis points to 7.30% in the week ended September 25, 2026, the Mortgage Bankers Association (MBA) said in its Weekly Mortgage Applications Survey released September 30 — the sixth straight weekly increase and the highest level since November 2023, a nearly three-year high. The rate on five-year adjustable-rate mortgages jumped 37 basis points to 6.47% over the same week, its highest level in more than two years, the survey showed.
Loan activity weakened sharply as borrowing costs rose. MBA’s seasonally adjusted Market Composite Index, which tracks mortgage application volume, fell 6% from the prior week; the Purchase Index dropped 4% week-over-week and was down 14% from the same week a year earlier, while the Refinance Index slid 9% week-over-week and was 56% lower than a year ago. “Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines,” said Joel Kan, CMB, MBA’s vice president and deputy chief economist. Investing.com reported that previously owned home sales had already fallen to their weakest pace in over a year in August.
The rise in mortgage rates tracked an increase in 10-year Treasury yields, which Investing.com linked to elevated energy prices stemming from conflict in the Middle East and the war between Russia and Ukraine, along with concerns over government debt and stronger-than-expected economic data; the Federal Reserve raised its benchmark rate in September, and markets are pricing in further increases before year-end, the outlet reported.
Mark Fleming, chief economist at First American Financial Corp., said rates above 7% will keep more homeowners tethered to their current properties “because the gap between homeowners’ existing 3% or 4% mortgages and today’s higher rates is getting wider.” Fleming said home sales may slow further, but large price declines remain unlikely absent a severe economic disruption that forces a wave of sales — describing prices as “downside sticky.”
References
Mortgage Bankers Association – Mortgage Applications Decrease in Latest MBA Weekly Survey / Investing.com – US Mortgage Rates at Three-Year High of 7.3%
