US mortgage rates fall to 7.3%, but loan demand declines — CNBC

In the United States, the average contract rate for 30-year fixed-rate mortgages fell over the week from 7.37% to 7.3%. At the same time, the seasonally adjusted total volume of mortgage applications decreased by 1%, while applications for home purchase loans fell by 2%, CNBC reports.

This average rate applies to 30-year fixed-rate loans with balances of up to $832,750. It is calculated for loans with a 20% down payment and includes an origination fee.

Home purchase applications decline

According to the Mortgage Bankers Association, the number of mortgage applications for home purchases was 19% lower than in the same week a year earlier. Demand for refinancing changed little over the week, rising by 0.1%, but was 60% lower year on year.

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Rates declined for the third consecutive week but remained about one percentage point above the level of a year ago. According to CNBC, this gives borrowers little incentive to refinance existing loans.

Share of adjustable-rate loans rises

The average rate on 5/1 adjustable-rate mortgages declined from 6.41% to 6.29%. The share of such loans continued to rise and reached its highest level since September 2025.

Mortgage Bankers Association Chief Economist Mike Fratantoni linked the decline in rates to the Federal Reserve's decision not to raise its rate at the October meeting. According to a separate Mortgage News Daily survey, mortgage rates rose slightly at the start of the new week after the release of stronger-than-expected job openings data.