Mortgage application volume falls as refi demand hits 2025 low
Freddie Mac separately pegged the 30-year average at 7.28% for the week ending October 1, the highest since November 2023. The 10-year Treasury note, meanwhile, surged to 5.35% on Wednesday, a level not reached since 2002.
The yield has climbed nearly 60 basis points since late July, a run fueled by persistent inflation, rising energy costs, and mounting concern over federal debt levels.
For brokers, the figures describe a market with no clear release valve: every major loan category declined, with affordability constraints squeezing Federal Housing Administration (FHA) and first-time buyers most acutely.
Michael Brenning, chief operating officer at eLend, says rapid swings in Treasury yields are forcing lenders to reprice multiple times a day, disrupting rate locks, increasing operational pressure, and adding another layer of uncertainty for borrowers. https://t.co/uq8yZ4wEqP
— Mortgage Professional America Magazine (@MPAMagazineUS) October 5, 2026
Refinance activity collapses
Applications to refinance a home loan fell 8% week-over-week, hitting their lowest point since 2025 and tracking 56% below the same period one year ago.
“Very few homeowners have an incentive to refinance at these rates,” said Joel Kan, vice president and deputy chief economist at the MBA in Washington, D.C.
