US mortgage applications decline despite lower interest rates

Mortgage applications in the US fell during the week ending October 3, despite a slight cut in interest rates.

According to the Mortgage Bankers Association on Wednesday, mortgage application volume declined 4.7% on a seasonally adjusted basis during the mentioned period.

The average interest rate on the 30-year fixed-rate mortgage dropped to 6.43%, compared to 6.46% the previous week.

Refinance applications also retreated 8% last week but are still 18% higher than the same period in 2024.

Mike Fratantoni, the association's chief economist, said in the statement that the relative stability in fixed-rate rates has led to a decline in refinancing activity overall, with the exception of a slight increase in demand for Federal Housing Administration (FHA) refinancing.