Lower Rates Fail to Lift Mortgage Demand as Applications Fall 10 Percent

New purchase applications drop and refinancing demand cools.A townhouse for lease in Elkridge, Md., on Dec. 14, 2025. Madalina Kilroy/The Epoch Times1/7/2026|Updated: 1/7/2026Lower interest rates were not enough to bolster mortgage demand to finish 2025 and ring in the new year, says the Mortgage Bankers Association (MBA).The average contract interest rate for 30-year fixed-rate mortgages fell to 6.25 percent from 6.32 percent—the lowest since September 2024—for the week ended Jan. 2.Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of “The War on Cash.”Author’s Selected Articles