✎ Contributed by Ty Griffin
The average rate for a conforming 30-year fixed mortgage rose to 7.12% from 6.97%, reaching its highest level since 2024 and weakening demand for home loans. Total mortgage application volume declined 1.5% from the previous week as both purchases and refinancing activity slowed.
Borrowers increasingly turned to adjustable-rate mortgages, which offered initial rates more than one percentage point below comparable fixed-rate loans. ARMs represented 9.8% of applications, up from 8.4% the previous week, while refinancing applications fell to their lowest level since February 2025.
Market Reaction
- Rocket Companies Inc. (NYSE: RKT): $12.28, down $0.45 (3.57%)
- UWM Holdings Corp. (NYSE: UWMC): $1.22, down $0.05 (3.92%)
- loanDepot Inc. (NYSE: LDI): $0.69, down $0.05 (6.35%)
- D.R. Horton Inc. (NYSE: DHI): $141.59, down $2.52 (1.75%)
- Lennar Corp. (NYSE: LEN): $81.78, down $1.28 (1.54%)
Investor Sentiment
Declines among mortgage lenders reflect concern that sustained rates above 7% could further reduce loan originations and refinancing revenue. Growing demand for adjustable-rate products may preserve some activity, but it also highlights the affordability pressure facing borrowers seeking lower initial payments.
Homebuilders remain exposed to the same financing constraints as the fall housing season begins. Investors will monitor bond yields, mortgage application volumes and builder incentives to determine whether demand can stabilize or whether elevated borrowing costs will extend the housing slowdown.
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