Mortgage Applications Plunge as Surging Interest Rates Deter Buyers

Mortgage applications fell last week as rising oil prices drove interest rates higher, deterring would-be homebuyers, according to the Mortgage Bankers Association.For the week ending on July 24, MBA's Market Composite Index—a measure of total mortgage loan application volume—plunged 6.4% on a seasonally adjusted basis from one week earlier.The seasonally adjusted Refinance index plummeted 10% from a week ago, while the Purchase Index, deemed a leading indicator for home sales, dipped 4% week over week. "Despite housing inventory increasing in certain markets, higher rates have added to ongoing affordability challenges for many homebuyers, which drove the decrease in purchase activity over the week," says Joel Kan, MBA's vice president and deputy chief economist.According to MBA calculations, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances climbed to 6.76%, the highest rate since August 2025.Freddie Mac put average 30-year rates at 6.58% for the week ending July 23, also an 11-month high, as the price of oil briefly topped $100 a barrel amid escalating tensions in the Middle East that followed the breakdown of a fragile ceasefire be...