Mortgage demand dropped sharply last week as interest rates climbed to their highest level since October, according to data from the Mortgage Bankers Association.
Total mortgage applications fell 10.5% week over week. The average rate for a 30-year fixed mortgage rose to 6.43%, up from 6.30%. Analysts linked the increase to higher Treasury yields driven by rising energy prices and global uncertainty.
Refinancing activity fell 15% for the week, though it remained above year-ago levels. Purchase applications also declined 5%, as affordability pressures and economic concerns kept buyers on the sidelines.
US mortgage rates climbed for a third straight week, pushing home-financing costs to the highest since October and dealing a blow to both purchasing and refinancing activity https://t.co/g1e0J3CDPv
— Bloomberg (@business) March 25, 2026
Borrowers showed increased interest in adjustable-rate mortgages, which offer lower initial rates but carry more long-term risk.
Market volatility tied to geopolitical tensions involving President Donald Trump and Iran has added pressure on bond yields, which directly influence mortgage rates.
Economists warn that inflation expectations may keep borrowing costs elevated even if tensions ease.
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TIPP Staff
