Mortgage & housing market update
Mortgage Applications Slip as Refinancing Reaches a New Low
Mortgage applications declined again as higher fixed rates reduced refinancing and left purchase demand moving mostly sideways.
The Mortgage Bankers Association reported a 1.5% decline in seasonally adjusted application volume for the week ending September 18. Purchase applications fell 1% and remained broadly range-bound, while refinance activity declined 3% and reached its slowest pace since February 2025.
The survey's average contract rate for a conforming 30-year fixed mortgage increased to 7.12%. Adjustable-rate mortgages accounted for 9.8% of applications as the reported 5/1 ARM average moved to 6.10%, widening the initial-rate gap between adjustable and fixed options. These national figures include points and are not personalized rate quotes.
A lower initial ARM rate can improve near-term payment, but buyers should review the fixed period, adjustment schedule, caps and ability to handle a future increase. Homeowners considering a refinance should compare closing costs, monthly savings and the break-even period before replacing an existing loan.
Mortgage-rate information is provided for education only and is not a rate quote, offer, or commitment to lend. Actual rates, fees and terms vary by borrower, property, loan program, market conditions and lock period. Home-price indexes are not appraisals or forecasts for a specific property.
Source reporting: Housing Brief Housing News. This market update is an original summary and commentary prepared by the Carson Home Team.