Key facts
- Mortgage applications fell 6% in the week ended Sept. 25, 2026.
- The 30-year fixed mortgage rate rose to 7.3%, its highest since November 2023.
- Purchase applications declined 4% week-over-week.
- Refinance applications fell 9% week-over-week.
- Adjustable-rate mortgage applications increased to 10.3% of total applications.
- Xactus's Mortgage Intent Index fell 7.6% week-over-week to 108.9.
Mortgage applications in the U.S. saw a significant drop of 6% in the week ending September 25, 2026, driven by a surge in interest rates to their highest point in nearly three years. The average rate for a 30-year fixed mortgage climbed to 7.3%, pushing potential borrowers to the sidelines.
Both refinance and purchase mortgage applications experienced declines. The refinance index fell 9% from the previous week and was 56% lower than the same week a year ago. The seasonally adjusted purchase index decreased by 4%, while the unadjusted purchase index was down 5% week-over-week and 14% lower than the previous year.
Adjustable-rate mortgages (ARMs), offering rates about 80 basis points lower than fixed-rate loans, saw their share of applications rise to 10.3%, the highest since October 2025. The overall refinance share of mortgage activity decreased to 38.3% from 39.3% the prior week.
Specific loan types also saw shifts. The Federal Housing Administration (FHA) share remained at 16.7%, while the U.S. Department of Veterans Affairs (VA) share dipped to 11.9% and the U.S. Department of Agriculture (USDA) share fell to 0.5%.
Rates for various mortgage products increased. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances rose to 7.3% from 7.12%, and jumbo loan balances increased to 7.27% from 7.15%. FHA-backed 30-year fixed-rate mortgages saw rates climb to 6.97% from 6.78%, and 15-year fixed-rate mortgages increased to 6.56% from 6.43%. The average rate for 5/1 ARMs rose to 6.47% from 6.1%.
Further indicating a slowdown, Xactus's Mortgage Intent Index, which tracks credit-pull activity, fell 7.6% week-over-week to 108.9, its lowest non-holiday reading of the year and 18.6% below the same week last year. This decline signals continued weakness in borrower demand and significant headwinds for the mortgage industry.