Mortgage applications slide as 30-year rate hits three-year high
Jumbo borrowers faced comparable headwinds, with that rate rising to 7.27% from 7.15%. The 15-year fixed followed suit, moving to 6.56% from 6.43%.
“Government refinances declined 13 percent, with both FHA and VA applications experiencing double digit decreases over the week,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist.
Refinance retreat deepens
The Refinance Index fell 9% week over week and landed 56% below the same period one year ago, a reversal from the refi conditions that defined much of 2025.
The refinance share of total applications slipped to 38.3% from 39.3%. Government-backed products bore the steepest declines: the FHA average contract rate climbed to 6.97% from 6.78%, while the VA share of total applications edged down to 11.9% from 12.0%.
Edward Seiler of the Mortgage Bankers Association says monthly mortgage payments eased in August as smaller loan sizes helped offset higher rates, although affordability continues to vary significantly across markets.https://t.co/PdtWg8gCic
— Mortgage Professional America Magazine (@MPAMagazineUS) September 25, 2026
Borrowers pivot to adjustable-rate products
With fixed rates elevated, adjustable-rate mortgages are absorbing some of the displaced demand. The ARM share of total applications climbed to 10.3%, its highest level since October 2025, as borrowers sought pricing relief unavailable in the fixed-rate market.
