Mortgage Rates Drop to Lowest Levels Since Spring, MBA Survey Finds

According to the Mortgage Bankers Association’s (MBA) Weekly Applications Survey, average mortgage rates declined across all major loan categories last week. The drop included 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration (FHA), 15-year fixed-rate loans, and 5/1 adjustable-rate mortgages (ARMs).

Joel Kan, MBA’s vice president and deputy chief economist, noted that rates are now at their lowest level since April.

“Mortgage rates declined last week, with the 30-year fixed rate decreasing to its lowest level since April … However, that was not enough to spark more application activity,” Kan explained.

Mortgage Application Activity Declines

Despite falling rates, borrower demand slowed:

• The MBA’s Market Composite Index, a measure of mortgage loan application volume, was down 1.2%.

• Purchase applications fell 3%, ending a four-week streak of increases.

• Refinance applications also eased slightly, showing that homeowners are still cautious despite improved affordability.

Why This Matters for Buyers and Homeowners

Mortgage rates remain a critical factor for anyone looking to buy, sell, or refinance a home. Even a small rate change can significantly impact monthly payments and long-term affordability. While the recent decline is encouraging, the slower application activity highlights that many buyers are waiting for more stability in the housing market before making a move.

Longstanding Market Insight

The MBA’s Weekly Applications Survey has been conducted since 1990 and covers approximately 75% of all U.S. retail residential mortgage applications, making it one of the most trusted indicators of mortgage and housing market trends.

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