US Mortgage Applications Plunge 17% as 30-Year Rate Hits 6.52% in Third Weekly Increase

Oct 16, 2024, 11:01 AM

Mortgage applications in the United States plunged by 17% for the week ending October 11, according to data from the Mortgage Bankers Association (MBA), a steep decline from the previous week's 5.1% decrease. The MBA's Purchase Index fell to 138.4 from 149.2, while the Market Index decreased to 230.2 from 277.5. This significant drop in applications coincides with a surge in the average 30-year fixed mortgage rate, which rose for the third consecutive week to 6.52% from 6.36%, reaching its highest level since early August. The rise in mortgage rates has spooked the housing market, dampening both home-buying and refinancing demand as higher borrowing costs deter potential buyers and homeowners seeking to refinance.