US mortgage applications fell 6% in the week ending September 25, extending the decline to a fourth consecutive week as borrowing costs continued to rise. The average rate on 30-year fixed mortgages with conforming balances increased to 7.30% from 7.12%, reaching its highest level since November 2023. Higher rates have particularly discouraged refinancing, with applications dropping 9% and its share of total mortgage activity falling to 38.3% from 39.3%. Government-backed refinancing was even weaker, declining 13% as both FHA and VA applications recorded double-digit falls, according to MBA economist Joel Kan. Demand for home purchases also weakened, with applications down 4% on the week. Buyers are facing the combined pressure of elevated mortgage rates and continued annual increases in home prices. Meanwhile, adjustable-rate mortgages, which offer rates roughly 80 basis points below fixed loans, accounted for 10.3% of applications, the highest proportion since October 2025.