Federal Reserve Rate Hike Triggers Sharp Drop in Mortgage Application Volume

By Julie Gerstein · Realtor.com · 2026-09-23

According to Realtor.com, total mortgage demand slipped by 1.5% last week as borrowing costs surged following a unanimous Federal Reserve decision to raise interest rates to 4%. This shift has pushed 30-year fixed rates toward the 7% threshold, leading to a significant 11% year-o

According to Realtor.com, total mortgage demand slipped by 1.5% last week as borrowing costs surged following a unanimous Federal Reserve decision to raise interest rates to 4%. This shift has pushed 30-year fixed rates toward the 7% threshold, leading to a significant 11% year-o