Demand for home loans in the United States remains near historically weak levels, with mortgage applications declining again in the latest weekly data despite a modest retreat in interest rates.

The Mortgage Bankers Association (MBA) reported November 4 that its Market Composite Index, which measures total mortgage application volume, fell 1.2% for the week ending October 30. The decline followed a 3.4% increase the previous week, but overall applications remained approximately 42% below the level recorded a year earlier.

Applications for home purchases dropped 2% on a seasonally adjusted basis during the week and were down approximately 19% from the same period in 2025. Refinancing applications increased just 0.1% week over week but remained nearly 60% lower than a year earlier, reflecting how few homeowners are seeking to replace existing mortgages.

Borrowing costs have continued to put pressure on prospective buyers. The MBA reported that the average contract rate for a 30-year fixed mortgage with a conforming loan balance declined to 7.30% from 7.37%. Freddie Mac separately reported that the national average for a 30-year fixed mortgage reached 7.18% on November 5, its third consecutive weekly decline.

Despite the recent rate relief, mortgage activity has not recovered. More borrowers are turning to adjustable-rate mortgages to secure lower initial payments, with those loans accounting for 11.4% of applications, the highest share since September 2025, according to the MBA.

High home prices and borrowing costs continue to limit affordability, leaving many potential buyers unable or unwilling to enter the market. The latest figures show that lower mortgage rates alone have not been enough to produce a meaningful recovery in demand.