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Mortgage rates dropped again, but homebuyers are still leaving
CNBC • • business
Key Points:
- Mortgage demand declined by 1.2% last week despite falling mortgage rates, according to the Mortgage Bankers Association's seasonally adjusted index.
- The average interest rate for 30-year fixed-rate mortgages dropped to 7.3% from 7.37%, with points decreasing slightly, following the Federal Reserve's decision to pause rate hikes.
- Refinance applications remained flat, up just 0.1% week over week but still 60% lower than the same period last year, as rates remain about one percentage point higher than last year.
- Purchase mortgage applications fell 2% from the previous week and were down 19% year over year, indicating continued weakness in the housing market.
- Adjustable-rate mortgages (ARMs) gained popularity, with the average 5/1 ARM rate dropping to 6.29%, reaching its highest share since September 2025 as borrowers seek lower initial payments.
