Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (October 7, 2026) - Mortgage applications decreased 4.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2026.

The Market Composite Index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4 percent compared with the previous week. The Refinance Index decreased 8 percent from the previous week and was 56 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 15 percent lower than the same week one year ago.

"Mortgage rates moved to their highest level in almost three years last week, with the 30-year fixed rate reaching 7.49 percent as both Treasury rates increased and spreads widened with the increase in rate volatility," said Joel Kan, CMB, MBA's Vice President and Deputy Chief Economist. "Very few homeowners have an incentive to refinance at these rates, and the jump in borrowing costs has caused many potential borrowers to step back from the purchase market. With rates roughly a percentage point higher than a year ago, refinance applications last week were at the lowest level since 2025 and fell to less than half of last year's pace."

Added Kan, "Purchase activity decreased across all loan types with FHA purchase applications falling the most, declining 6 percent, as these higher rates add to ongoing affordability challenges for many homebuyers. As noted in recent weeks, a higher share of borrowers are opting for ARMs to lower their initial payments, with the ARM share steady at 10.3 percent last week."

The refinance share of mortgage activity decreased to 37.0 percent of total applications from 38.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 10.3 percent of total applications.

The FHA share of total applications decreased to 16.4 percent from 16.7 percent the week prior. The VA share of total applications decreased to 11.8 percent from 11.9 percent the week prior. The USDA share of total applications remained unchanged at 0.5 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832,750 or less) increased to 7.49 percent from 7.30 percent, with points increasing to 0.84 from 0.75 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $832,750) increased to 7.39 percent from 7.27 percent, with points increasing to 0.52 from 0.50 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 7.14 percent from 6.97 percent, with points increasing to 1.36 from 1.18 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 6.71 percent from 6.56 percent, with points increasing to 1.05 from 1.02 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs decreased to 6.43 percent from 6.47 percent, with points increasing to 1.69 from 1.20 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

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The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.