Mortgage Activity Declines in October as Mortgage Rates Increase
The Market Composite Index, a measure of mortgage loan application volume by the Mortgage Bankers Association’s (MBA) weekly survey, decreased 13.9% month-over-month on a seasonally adjusted (SA) basis due to higher mortgage rates.
This decline was reflected in both the Purchase and Refinance Indices, which fell by 4.4% and 23%, respectively. However, compared to October 2023, the Market Composite Index is up by 39%, with the Purchase Index seeing a slight 1.9% increase and the Refinance Index higher by 149.9%.
The average 30-year fixed mortgage rate reversed its downward trajectory with an increase of 36 basis points, following volatility in the 10-year Treasury yield. This brought the rate back to around the same level as it was in August at 6.53%. However, compared to its peak last October, the current rate is 125 bps lower.
NAHB Economist Catherine Koh provides more in this Eye on Housing post.
Latest from NAHBNow
Sep 26, 2025
Podcast: Countdown to Shutdown - Will Congress Act?On the latest episode of NAHB's podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discuss the potential of a government shutdown, the latest economic data, and upcoming events NAHB members don't want to miss.
Sep 26, 2025
Trump Announces New Tariffs on Furniture and Kitchen CabinetsIn a move that could raise construction costs, President Trump on Sept. 25 announced he would impose a 50% tariff on imported kitchen cabinets and bathroom vanities, along with a 30% tariff on upholstered furniture, effective on Oct. 1.
Latest Economic News
Sep 26, 2025
2025 Second Quarter State-Level GDP DataReal gross domestic product (GDP) increased in 48 states in the second quarter of 2025 compared to the first quarter, according to the U.S. Bureau of Economic Analysis (BEA).
Sep 26, 2025
State/Local Property Tax Revenue Share Falls for Third Straight QuarterIn the second quarter of 2025, property tax revenue for state and local governments recorded a new high, although it decreased as a share of total tax revenue.
Sep 25, 2025
Mortgage Rates Continue Downward Trend in SeptemberAverage mortgage rates in September trended lower as the bond market priced in expectations of rate cuts by the Federal Reserve. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.35%, 24 basis points (bps) lower than August.