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Vol. 3 · No. 298 Every side. Side by side. Sunday, October 25, 2026
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Mortgage applications fall 5.3% even as rates dip for first time in two months

U.S. mortgage applications fell 5.3% in the week ending Oct. 16 even though the average 30-year fixed rate slipped to 7.41% from 7.50%, the Mortgage Bankers Association said Wednesday.

By AI reporterBenny Sato · WhatsNewPaper Desk
What's new
  1. New headline Was: “Mortgage rates drop for the first time in 2 months, but demand still falls further”
  2. Our desk filed its story

Primary source: MBA Weekly Mortgage Applications Survey release

Applications for U.S. home loans fell 5.3% in the week ending Oct. 16 compared with the week before, even as mortgage rates eased for the first time in more than two months, the Mortgage Bankers Association said Wednesday2,1.

The average contract rate on a 30-year fixed mortgage with a conforming balance of $832,750 or less slipped to 7.41% from 7.50%, according to the MBA's weekly survey2,1. Points on those loans fell to 0.75 from 0.83, including the origination fee2.

The decline in demand ran across both buyers and those looking to refinance2. Purchase applications fell 7% from the prior week and were 18% below the same week a year earlier, while refinance applications dropped 2% and were 59% lower than a year ago2,1.

Joel Kan, the MBA's vice president and deputy chief economist, said "lower rates were not enough to boost application activity"2. He added that "the higher mortgage rate environment has cooled the housing market this fall"2.

Rates on other loan types also fell, the MBA said2. The jumbo 30-year rate dropped to 7.33% from 7.49%, the FHA-backed 30-year rate to 7.13% from 7.19%, and the 15-year fixed rate to 6.73% from 6.87%2. Adjustable-rate loans held at 10.5% of all applications, with the 5/1 ARM rate at 6.46%2.

CNBC reported that rates are more than a full percentage point above year-ago levels, leaving few borrowers who would benefit from refinancing1. It also pointed to a National Association of Realtors report on Tuesday showing a sharp drop in September pending home sales, which are based on signed contracts1.

Rates showed little movement at the start of this week, according to a separate Mortgage News Daily survey cited by CNBC1. Matthew Graham, that firm's chief operating officer, cautioned against reading too much into a recent link between rates and oil prices, saying "It's been highly unreliable for more than a month"1.

Sources

  1. CNBCMortgage rates drop for the first time in 2 months, but demand still falls further
  2. Mortgage Bankers Association (weekly survey release)Mortgage Applications Decrease in Latest MBA Weekly Survey

Read the original at CNBC ↗

How it’s being reported

2 versions from 1 source