US mortgage applications fall 10.5pc as interest rates hit five-month high

25th Mar 2026 09:12

(Sharecast News) - US mortgage applications slumped 10.5% week-on-week in the seven days ended 20 March, according to the Mortgage Bankers Association of America, extending the previous week's 10.9% decline.

Applications to purchase a new home were down 5%, while applications to refinance a mortgage, which are more sensitive to short-term changes in interest rates, nosedived 15%.

Last week's decrease came as the average contract interest rate for 30-year fixed-rate mortgages hit a five-month high of 6.43%, while the US and Israel's war in the Persian Gulf also triggered a surge in energy prices and long-dated Treasury yields as the Federal Reserve cut their outlook for interest rate cuts this year.

MBA deputy chief economist Joel Kan said: "The threat of higher for longer oil prices continued to keep Treasury yields elevated, and mortgage rates finished last week higher. The 30-year fixed rate rose to 6.43%, more than 30 basis points higher than at the end of February and at its highest level since October 2025.

"Higher mortgage rates, coupled with affordability constraints and economic uncertainty, pushed some potential homebuyers to the sidelines."

Reporting by Iain Gilbert at Sharecast.com