Mortgage rates hit a nearly three-year high, pushing more borrowers towards riskier adjustable-rate loans to manage costs.
01Summary
- 01Total mortgage application volume fell 2.75% last week and was 37.5% lower than a year ago, per the Mortgage Bankers Association.
- 02The average rate on 30-year fixed mortgages rose to 7.50% from 7.49%, more than a full percentage point higher than a year ago.
- 03The share of adjustable-rate mortgage applications rose to 10.5%, the highest since October 2025.
- 04Refinance applications dropped 0.4% for the week and 56% year-over-year.
- 05Purchase applications fell 4% weekly and 16% annually; home prices continue to rise despite slower sales.
02Why it matters
Higher mortgage rates squeeze affordability, pushing buyers toward riskier loans and dampening housing market activity, which affects home values and borrowing costs.
Answers are generated by AI from the story summary; they are not investment, health or legal advice.





